On February 24, AMW purchased 4,000 shares of KMP newly issued 6 percent cumulat

Question

On February 24, AMW purchased 4,000 shares of KMP newly issued 6 percent cumulative $75 par preferred stock for $304,000. Each share carried one
detachable stock warrant, entitling the holder to acquire at $10 one share
of KMP no-par common stock. On February 25, the market price for the preferred stock ex-warrants was $72 per share, and the market price of the stock warrants was $8 per warrant. On December 29, AMW sold all the stock warrants fro $41,000. The gain on the sale fo the stock warrants was?

A) $-0-

B) $1,000

C) $9,000

D) $10,600

Explanation / Answer

I would assume it would be C) 9,000 which would be 41,000- 32,000 (32,000 would have been the 4,000 warrants times their $8 value at the time of purchase).

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