Use the Following Information for Questions 55-56

question 47

Multiple Choice

Use the following information for questions 55-56.
On May 1, 2020, Wong 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 Wong'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 Wong's common shares was $ 35, but the value of the warrants was NOT determinable. Wong is a private corporation that follows ASPE, but does NOT use the residual method.
-On May 1, 2020, Wong should credit Bonds Payable for

• A) $ 515,000.
• B) $ 500,000.
• C) $ 480,000.
• D) cannot be determined from the information given.

---

Definitions:

Eligible Voters

Individuals who meet the requirements set by law to vote in an election.

Presidential Elections

The formal democratic process through which the President of a country is elected, typically involving campaigns, voting, and electoral processes.

Dred Scott Decision

A landmark U.S. Supreme Court case in 1857 that ruled African Americans, whether enslaved or free, could not be American citizens and therefore had no standing to sue in federal court, exacerbating tensions leading up to the Civil War.

United States Citizen

An individual who has legal citizenship in the United States, either by birth within the country or through naturalization.