On January 1,2023 , when the fair value of its common shares was $75 per share, Crane Corp. issued $11 million of 9% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into 4 common shares. The debentures were issued for $11.5 million. The bond payment's present value at the time of issuance was $9.1 million and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1,2024, the corporation's common shares were split 2 for 1 , and the conversion rate for the bonds was adjusted accordingly. On January 1, 2025, when the fair value of the corporation's common shares was $129 per share, holders of 30% of the convertible debentures exercised their conversion option. Crane applies ASPE and uses the straight-line method for amortizing any bond discounts or premiums. (a)