On may 1, 2018, payne co. issued $1,500,000 of 7% bonds at 103, which are due on april 30, 2028. twenty detachable stock warrants entitling the holder to purchase for $40 one share of payne's common stock, $15 par value, were attached to each $1,000 bond. the bonds without the warrants would sell at 96. on may 1, 2018, the fair value of payne's common stock was $35 per share and of the warrants was $2. reference: ref 16-2 on may 1, 2018, payne should record the bonds with a group of answer choices discount of $16,800. discount of $15,000. discount of $60,000. premium of $45,000.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)