On May 1, 2010, Payne Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2020.

On May 1, 2010, Payne Co. issued $300,000 of 7% bonds at 103, which are due on April 30, 2020. Twenty detachable stock warrants entitling the holder to purchase for $40 one share of Payne’s common stock, $15 par value, were attached to each $1,000 bond. The bonds without the warrants would sell at 96. On May 1, 2010, the fair value of Payne’s common stock was $35 per share and of the warrants was $2. On May 1, 2010, Payne should credit Paid-in Capital from Stock Warrants for$11,520.$12,000.$12,360.$21,000.