Cheng Corporation issued $6,000,000 at 9% ten year convertible bonds on July 1, 2012 at 96.1 plus accrued interest. The bonds were dated April 1, 2010 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight line basis. On April 2013, $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 the conversion.

What should the amount of unamortized bond discount on April 1, 2013 relating to the bonds converted ?

43,200 ( Correct answer )

44,400

23,400