1. MMM COMPANY has outstanding convertible bonds with a face value of $10,000. The Company has just paid interest on these bonds. The bonds have a book value of $10,500. Each $1000 bond can be converted into 40 shares of common stock with a par value of $20. All the bonds are converted into Common Stock at $30 per share. Required: a. Use the Book Value Method to effect the conversion. Show computation. b. Prepare general journal entries to record the conversion in the books of MMM Company.