i understand part A fully

but for part B i want you to show each journal entry, AND show the calculation/logic used to get to the numeric anseer.

P16-92 Recording entries for convertible debt (\#2/4) [25 points] On January I of Year I. when is 530 par value common stock was selling for $80 per share. Ancil Corporation issued $5.000.000 of 48 comvertible bonds due in 10 year. The comersion option allowed the holder of each $1,000 bond to comver the bond iato five shares of the corporation's $30 par value common stock. The bonds were issued for $5.500.000. The present value of the bond payments at the fime of issuance was $4,250,000. and the corporation belicves that the difference between the present value and the amount paid is attributable to the conversion feature: Two years later on fanuary I of Year 3. when the corporation's common stock was selling for \$90 per thare. holders of 40% of the camerible bonds exereised their conversion aption. The corporation uses the staight-line interest method for amortizing any bond discount or premium. Required a. Provide the entry to record the origimal issuance of comvertible bonds on January 1 of Year 1. B. Provide the entry to recond the exereise of the comersion option, using the book value method, on January 1 of Year 3