Use the Following Information for Questions

question 44

Multiple Choice

Use the following information for questions
On May 1, 2016, Payne Co.issued $300,000 of 7% bonds at 103, which are due on April 30, 2026.Twenty detachable share warrants entitling the holder to purchase for $40 one share of Payne's ordinary shares, $15 par value, were attached to each $1,000 bond.The bonds without the warrants would sell at 96.On May 1, 2016, the fair value of Payne's shares was $35 per share and of the warrants was $2.
-On May 1, 2016, Payne should credit Share Premium -Share Warrants for

• A)$9,000.
• B)$12,000.
• C)$21,000.
• D)$12,360.

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Definitions:

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