7. On January 1, 2020, Carina Corp. issued eight-year, 3% bonds with a face value of $600,000, with interest payable semi-annually on June 30 and December 31. The bonds were sold to yield 4%. Table values are: Present value of 1 for 8 periods at 3% Present value of 1 for 8 periods at 4% Present value of 1 for 16 periods at 1.5% Present value of 1 for 16 periods at 2% Present value of annuity for 8 periods at 3% Present value of annuity for 8 periods at 2% Present value of annuity for 16 periods at 1.5% Present value of annuity for 16 periods at 2% The issue price of the bonds is: a) $ 599,979. b) $ 559,002. c) $ 599,760. d) $ 570,450. .789 .731 .788 .728 7.020 7.325 14.131 13.578 8. On July 1, 2020, Rihanna Corporation called its 4% $5 million convertible bonds for conversion. There was $90,500 of unamortized discount on July 1, 2020. At the time of conversion, the balance in the Contributed Surplus-Conversion Rights was $125,000. On the date of conversion, the bonds fair value was $4,935,000 so the company paid an additional $45,000 to induce the conversion. Assuming ASPE, What amount is recorded under the "Loss on Conversion" account