When the cash proceeds from a bond issued with detachable stock warrants exceeds the sum of the par value of the bonds and the fair market value of…

When the cash proceeds from a bond issued with detachable stock warrants exceeds the sum of the par value of the bonds and the fair market value of the warrants, the excess should be credited to:a.additional paid-in capital from stock warrants.b.retained earnings.c.a liability account.d.premium on bonds payable.Use the following information for questions 10 and 11Presented below is information related to Fehr Corporation:Common Stock, $1 par$2,600,000Paid-in Capital in Excess of Par-Common Stock330,000Preferred 8 1/2% Stock, $50 par1,200,000Paid-in Capital in Excess of Par-Preferred Stock240,000Retained Earnings900,000Treasury Common Stock (at cost)90,000The total stockholders’ equity of Fehr Corporation isa.$5,180,000 b.$5,270,000 c.$5,300,000 d.$5,510,000 The total paid-in capital (cash collected) related to the common stock isa.$3,050,000 b.$2,930,000 c.$3,170,000 d.$2,810,000

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