Monty Co$.$ has $$2400000$ of $8\%$ convertible bonds outstanding. Each $$1000$ bond is convertible into $30$ shares of $$30$ par value common stock. The bonds pay interest on January $31$ and July $31.$ On July $31,2020,$ the holders of $$600000$ bonds exercised the conversion privilege. On that date the market price of the bonds was $106$ and the market price of the common stock was $$39.$ The total unamortized bond premium at the date of conversion was $$112500.$ Monty should record, as a result of this conversion, a

credit of $$28125$ to Premium on Bonds Payable.

loss of $$648000.$

credit of $$511875$ to Paid$-$in Capital in Excess of Par.

credit of $$88125$ to Paid$-$in Capital in Excess of Par.