E$11$A$.$ Marisol Corporation has $$800,000$ of $6$ percent bonds outstanding. There is $$40,000$ of unamortized discount remaining on these bonds after the July $1,2014,$ semiannual interest payment. The bonds are convertible at the rate of $40$ shares of $$5$ par value common stock for each $$1,000$ bond. On July $1,2014,$ bondholders presented $$600,000$ of the bonds for conversion.

$1.$ Is there a gain or loss on conversion, and if so$,$ how much is it$?$

$2.$ How many shares of common stock are issued in exchange for the bonds?