7. 15 POINTS] Silver Lake, Inc. issued $12,000,000, 11% par value convertible debt in 2019. On July 1, 2022, Silver Lake paid a "sweetener" of $84,000 to bondholders to induce conversion of the convertible debt into 1,200,000 shares of its $2 per share par value common stock. On July 1, 2022, the date of conversion, there was a 100,000 unamortized premium applicable to the bonds. Also on July 1, 2022, the share price of Silver Lake's common stock was $15 per share. Silver Lake follows GAAP to record the conversion and sweetener as: A. Dr. Other Expenses Dr. Convertible Debt 11% Dr. Premium on Convertible Debt Common Stock $2 par Additional Paid in Capital-Common Stock 84,000 12,000,000 16,000 2,400,000 9,700,000 Cr. Cr. B. Dr. Other Expenses Dr. Convertible Debt 11% Dr. Premium on Convertible Debt Cr. Common Stock $2 par Cr. Additional Paid in Capital-Common Stock C. Dr. Other Expenses Dr. Convertible Debt 11% Common Stock $2 par Additional Paid in Capital-Common Stock Cr. Cr. Cr. Cash D. Dr. Other Expenses Dr. Convertible Debt 11% Dr. Premium on Convertible Debt Common Stock $2 par Cr. Cr. Cr. Cash Additional Paid in Capital-Common Stock 84,000 11,916,000 100,000 2,400,000 9,700,000 84,000 11,900,000 2,400,000 9,500,000 84,000 84,000 12,000,000 100,000 2,400,000 9,700,000 84.000