Exercise 11-11 Bond Conversion Marisol Corporation has $800,000 of 6 percent bonds outstanding. There is $40,000 of unamortized The bonds are convertible at the rate of 40 shares of sS par value common stock for each $1,000 bond. On Jdly 1, 2014, bondholders presented $0000d discount remaining on these bonds after the July 1, 2014, semiannual interest payment 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? No gain or loss How much is it? If there is no gain or loss, enter "o 2. How many shares of common stock are issued in exchange for the bonds? 24000shares 3. In dollar amounts, how does this transaction affect the total liabilities and the total stockholders equity of the company? In your answer, show the effects on four accounts Change in Total liabilities is as follows: Bonds payable Unamortized bond discount Decreasein total iabilities s60000 s40000