Martian Saucers Inc. (MSI) prepares its statements in accordance with IFRS. On January 1, 2021, MSI issued 1,000 nine-year, 5% convertible bonds (par $1,000). Interest is paid annually on the bonds on December 31. Each $1,000 bond is convertible into 25 common shares, which are currently trading at $34 per share. Similar straight bonds carry an interest rate of 7%. The bonds were issued at 92.

Required: a. Calculate the amount to be allocated to the bond and the options, and record the journal entry at the date of issuance. b. Assume that after eight years, when the carrying amount of the bonds is $981,308, the holders of the convertible debt decided to convert their bonds before the bond maturity date. Prepare the journal entry to record the conversion. c. How many shares were issued at the conversion?