Instructions (a) Assuming that the book value method was used, what entry would be made? (b) Assume that Vargo Ltd. offers $9,000 to induce early conversion. What journal entry would be made? (C) From the perspective of the bondholders, what is the likely motive for the conversion of bonds into preferred shares? What are the advantages of each investment that are given up or obtained by the bondholders who chose to convert their investment? (L0 A)