On February 24, Bramlett Company purchased 4,000 shares of Delaney Corp's 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 Delaney no-par common stock. On February 25, the market price of the preferred stock was $72 per share, and the market price of the stock warrants was
$8 per warrant. On December 29, Bramlett sold all the stock warrants for $41,000 . The gain on the sale of the stock warrants was
a. $0.
b. $1,000.
c. $9,000.
d. $10,600.
D
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What will be an ideal response?