1. On January 1, Dave Company issued $80,000 of convertible bonds at 98. Each $1000 bond was convertible into 10 shares of $1 par value common stock. Three years later, the bonds were converted to common stock when the market price of the shares was $86 per share. At the time of conversion, the discount on bonds payable was $700. Which of the following is true at the time of the conversion?

a. The common stock is recorded at $68,800.

b. The APIC is recorded at $78,500

c. The APIC is recorded at $79,900

d The APIC is recorded at $11,900