Question - On March 1, 2012, Ruiz Corp issued $1,000,000 of 8% nonconvertible bond at 104, which are due on Feb 28, 2032. In additional, each $1,000 bond was issued with $25 detachable bond stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at $95. On March 1, 2012, the fair value of Ruiz's commons stock was $40 per share and the fair value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid in capital from stock warrants?

a) $36,800

b) $42,600

c) $52,600

d) $50,000