Sloane Corporation Offered Detachable 5-Year Warrants to Buy One Share

Sloane Corporation offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $32) . The price paid for 2,000, $1,000 bonds with the warrants attached was $205,000. The market price of the Sloane 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) $20,500
C) $24,000
D) $25,000