Jackson, Inc. called its convertible debt in 2015. Assume the following related to the transaction: The 11% 5,000,000 par value bonds were converted into 500,000 shares of 1 par value ordinary shares on July 1, 2015. The carrying amount of the debt on July 1 was 4,800,000. The Share PremiumConversion Equity account had a balance of 100,000 and the company paid an additional 35,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.