2. Dalton, Inc. has $6,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of common stock ($30 par). The bonds pay interest on December 31. On December 31, 2022, all holders of bonds exercised the conversion privilege. On that date, the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $420,000. Dalton, Inc. should record, as a result of this conversion, a A. credit of $1,020,000 to Paid-in Capital in Excess of Par. B. loss of $180,000. C. credit of $180,000 to Paid-in Capital in Excess of Par. D. credit of $420,000 to Premium on Bonds Payable