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On March 1, 2016, E Corp. issued $1,000,000 of 8% nonconvertible bonds at 103, due...

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Accounting

On March 1, 2016, E Corp. issued $1,000,000 of 8% nonconvertible bonds at 103, due on February 28, 2026. Each $1,000 bond was issued with 30 detachable stock warrants, each of which entitled the holder to purchase, for $80, one share of Evan's $25 par common stock. On March 1, 2016, the market price of each warrant was $6. By what amount should the bond issue proceeds increase shareholders' equity?

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