I can't even figure out where to start. Any help would be great.

On January 1, 2016, when its $30par value common stock was selling for $80per share, Tamarisk Corp. issued $11,200,000of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000bond to convert the bond into five shares of the corporations common stock. The debentures were issued for $12,096,000. The present value of the bond payments at the time of issuance was $9,520,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2017, the corporations $30par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2018, when the corporations $15par value common stock was selling for $135per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.

(a)Prepare the entry to record the original issuance of the convertible debentures.

(b)Prepare the entry to record the exercise of the conversion option, using the book value method.