Fortune Cookie Inc. (FCI) issued $10 million of 10-year, 5% convertible bonds on April 1, Year 5 at 102. Coupons are payable on April 1 and October 1. Bonds without conversion privileges would have sold at 101.5. On February 1, Year 12, $3 million of these bonds were converted to 30,000 common shares. Accrued interest was paid in cash at the time of conversion.

(1) Determine the amount to be assigned to common shares at the time of conversion, assuming FCI follows IFRS.

(2) Determine the amount to be assigned to common shares at the time of conversion, assuming the followings:

1. FCI follows ASPE.

2. FCI uses zero common equity method for convertible bonds

3. FCI uses straight-line method for the amortization of discount/premium on bonds