Use the following information to answer the next_2_questions.
Logan Company issued $300,000 of 7% bonds at 103. Included in this package sale were twenty detachable stock warrants attached to each $1,000 bond.
After the sale, the warrants were trading on the market at $2 each. How much should be recorded for the value of the warrants using the incremental method?
a. $11, 520 b. $12,000 c. $12, 360 d. $21,000
2. The bonds were sold at a
a. discount of $12,000 b. discount of $3, 360. c. discount of $3,000. d. premium of $9,000.