During 2020, Khartoum Corp

Multiple Choice

During 2020, Khartoum Corp. issued four hundred $ 1,000 bonds at 104. One detachable warrant, entitling the holder to purchase 15 of Khartoum' common shares, was attached to each bond. At the date of issuance, the market value of the bonds, without the warrants, was 96. The market value of each warrant was $ 40. Using the relative fair value method, what amount should Khartoum credit to Bonds Payable from the proceeds?

A) $ 416,000
B) $ 400,000
C) $ 399,360
D) $ 384,000