Use the Following Information for Questions

question 63

Multiple Choice

Use the following information for questions.
On May 1, 2017, Durban Ltd.issued $500,000, 10 year, 7% bonds at 103.Twenty detachable warrants were attached to each $1,000 bond, which entitled the holder to purchase one of Durban's no par value common shares for $40.At this time, similar bonds without warrants were selling at 96.It was determined that the fair value of Durban's common shares was $35, but the value of the warrants was NOT determinable.Durban is a private corporation that follows ASPE, but does NOT use the residual method.
-On May 1, 2017, Durban should credit Contributed Surplus-Stock Warrants for

• A)$35,000.
• B)$20,000.
• C)$15,000.
• D)$ 0.

---

Definitions:

Suppliers

Businesses or individuals that provide goods or services to another business, often as part of a supply chain.