On April 7, 2020, Soweto Corp

On April 7, 2020, Soweto Corp. sold a $ 1,000,000 (par value), 20 year, 8% bond issue for $ 1,060,000. Each $ 1,000 bond has two detachable warrants. Each warrant permits the purchase one of Soweto's no par value common shares for $ 30. At the time of the sale, Soweto's securities had the following market values:

$\begin{array}{ll} \text{ No entry required } & \quad \text{\$ 1,006 \quad \quad \quad } \\ \text{ Gain or Loss on Derivatives } & \quad \text{\$ 21 \quad \quad \quad } \\ \text{ Derivatives - Financial Assets } & \quad {\text {\$ 27 }}{}\\ \\ \ \end{array}$

$\begin{array}{ll} \text{ Assuming that Soweto adheres to IFRS, what entry should the corpor ation make to record the sale of the bonds? }\ \end{array}$

$\begin{array}{ll}A) \text{ Cash ............................................................................................... } & \quad \text{\ 1,060,000 \quad \quad \quad } \\ \text{ Bonds Payable.................................................................................. } & \quad\quad\quad\quad\quad\quad \text{\ 1,000,000 \quad \quad \quad } \\ \text{ Contributed Surplus-Stock Warrants ................................................. } & \quad\quad\quad\quad\quad \quad \text{\ 60,000 \quad \quad \quad } \\ B) \text{ Cash .........................................................................................} & \quad \text{\ 1,060,000 \quad \quad \quad } \\ \quad\quad \text{ Bonds Payable ...........................................................................} & \quad \quad\quad\quad\quad\quad {\text { 1,018,000 }}{}\\\quad\quad \text{ Contributed Surplus-Stock Warrants ...................................} & \quad \quad\quad\quad\quad\quad {\text { 42,000 }}{}\\ C) \text{Cash ......................................................................................} & \quad \text{\ 1,060,000 \quad \quad \quad } \\ \quad\quad\text{Bonds Payable ..................................................................} & \quad \quad \quad \quad \quad\quad \text{\ 1,060,000 \quad \quad \quad } \\ D) \text{Cash ................................................................................... } & \quad \text{\ 1,060,000 \quad \quad \quad } \\\quad\text{Bonds Payable .........................................................................} & \quad\quad\quad \quad\quad\quad \text{\ 1,006,000 \quad \quad \quad } \\\quad\text{Contributed Surplus-Stock Warrants.......................................} & \quad\quad\quad \quad\quad\quad \text{\ 54,000 \quad \quad \quad } \\ \ \end{array}$