Lachapelle Drilling Inc., which follows IFRS, offers ten-year, 6% convertible bonds (par $ 1,000) at 95. Interest is paid annually on the bonds. Each $1,000 bond may be converted into 50 common shares, which are currently trading at $ 17 per share. Similar straight bonds are issued at 93. Instructions 1. Assume Lachapelle uses the residual method and measures the debt first. Calculate the amount to be allocated to the bonds and to the conversion rights, respectively. 2. Prepare the journal entry at date of issuance of the bonds under IFRS. 3. Assume that after a few years, when the unamortized discount on the bonds was $ 66,243, the holders of the convertible debt decided to convert their convertible bonds before the bond maturity date. The Lachapelle's common stock was trading at $27 per share at the time. Prepare the journal entry to record the conversion. 4. How many shares were issued at the conversion? 5. If Lachapelle follows ASPE, what alternatives does Lachapelle have to record the issuance of the convertible bonds