On March 1, 2021, Bullet Company issued $18 million of 10% bonds at 103, due on February 28, 2031. Each $1,000 bond was issued with 38 detachable stock warrants, each of which entitled the holder to purchase, for $50, one share of Bullet's no par common stock. On March 1, 2021, the market price of each warrant was $5. By what amount should the bond issue proceeds increase shareholders’ equity?

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine