Response to the following questions:
1. What are the three alternatives that could be used to account for gains or losses on bond refundings? What reasons support each of these methods? Which method did GAAP finally require? Why?
2. Why does a company issue a bond with detachable warrants (rights)? At what value is each of these securities recorded at the time of the bond issuance?
Support your answer using a minimum of two professional or academic sources.