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.

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The Answer of 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.

Use the Following Information for Questions