1. (TCO A) On July 1, 2010, an interest payment date, $60,000 of Parks Co. bonds were converted into 1,200 shares of Parks Co. common stock, each having a par value of $45 and a market value of $54. There is $2,400 unamortized discount on the bonds. Using the book value method, Parks would record (Points : 5)

no change in paid-in capital in excess of par.

a $3,600 increase in paid-in capital in excess of par.

a $7,200 increase in paid-in capital in excess of par.

a $4,800 increase in paid-in capital in excess of par.