5. On January 1, 2016, Bell Co. issued $10 million of 10-year convertible bonds at 105. On January 1, 2021, the bonds were converted into common stock with a market value of $11 million. Upon conversion, Bell would recognize:

Book value method. Market value method.

1. no gain or loss no gain or loss

2. no gain or loss loss

3. no gain or loss gain

4. loss loss

5. gain gain

I saw same question on chug but can't understand the calculation of carrying valure on jan1 2021.

plz solve this Q !! help me!!