On January 1, 2015, when its $30 par value common stock was selling for $60 per share, a corporation issued $20 million of 12% convertible debentures due in 10 years. The coriversion option allowed the holder of each $1,000 bond to convert it into six shares of the corporation's $30 par value common stock. The debentures were issued for 521 million. At the time of issuance, the present value of the bond payments was $18.50 million, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature On January 1. 2016, the corporation's $30 par value common stock was split 3 for 1. On January 1.2017, when the corporation ' $10 par value common stock was selling for $70 per share, holders of 40% of the convertible debentures exercised their conversion options. The corporation uses the straight-inne method for amortizing any bond discounts or premiums Required: 1. Prepare the journal entry to recoro the onginal issusnce of the convertible debentures 2. Prepere thilagurnal entry to recoro the exercise of the conversion option, using the book value method