Vernon Corporation Offered Detachable 5-Year Warrants to Buy One Ordinary

Vernon Corporation offered detachable 5-year warrants to buy one ordinary share (par value $5) at $20 (at a time when the shares were selling for $32) .The price paid for 2,000, $1,000 bonds with the warrants attached was $205,000.The market price of the Vernon bonds without the warrants was $180,000, and the market price of the warrants without the bonds was $20,000.What amount should be allocated to the warrants?

A) $20,000
B) $25,000
C) $24,000
D) $20,500