On January 1,2019 , when its $30 par value common stock was selling for $80 per share, Blossom Corp. issued $12,300,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation's common stock. The debentures were issued for $13,284,000. The present value of the bond payments at the time of issuance was $10,455,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1,2020 , the corporation's $30 par value common stock was split 2 for 1 , and the conversion rate for the bonds was adjusted accordingly. On January 1, 2021, when the corporation's $15 par value common stock was selling for $135 per share, holders of 30% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums. (b) Prepare the entry to record the exercise of the conversion option, using the book value method. (Credit account title: are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)