47. Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1, 2024 at 96.1 plus accrued interest. The bonds were dated April 1, 2024 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2025, $1,200,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What portion of the balance in Discount on Bonds Payable on April 1, 2025 relates to the bonds that were converted? a. $46,800 b. $43,200 c. $23,400 d. $44,400 Ans: B, LO: 1, Bloom: AP, Difficulty: Moderate, Min: 4, AACSB: Knowledge, AICPA BC: None, AICPA AC: Measurement, Interpretation and Analysis, AICPA PC: None, IMA: Reporting and Control: Financial Recordkeeping, IFRS: None Solution: $234,000+117 = $2,000/month; $1,200,000 $234,000-[($2,000 3) + ($2,000 6] = $43,200 $6,000,000