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.

Determine the amount to be assigned to common shares at the time of conversion, assuming FCI follows Residual Value Method, Straight line method

(Show me the journal entries too if possible :), it's alright if you aren't able to show it but please show me the workings on how you got the common shares atleast)