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Coronado Industries has $4070000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The
Coronado Industries has $4070000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2021, the holders of $1200000 bonds exercised the conversion privilege. On that date the market price of the bonds was 104 and the market price of the common stock was $37. The total unamortized bond premium at the date of conversion was $284000. Coronado should record, as a result of this conversion, a O loss of $12000. O credit of $176760 to Paid-in Capital in Excess of Par. O credit of $202360 to Paid-in Capital in Excess of Par. O credit of $90880 to Premium on Bonds Payable.
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