1. Quantco Corporation issued at a premium of $20,000 a $400,000 bond issue convertible into 8,000 shares of common stock (par value $30). At the time of the conversion, the unamortized premium is $5,000, the market value of the bonds is $450,000, and the stock is quoted on the market at $80 per share. If the bonds are converted into common, what is the amount of paid in capital in excess of par to be recorded on the conversion of the bonds?

$195,000

$165,000

$180,000

$255,000