Use the Following Information for Questions

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 Bonds Payable for

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