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On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800 shares of Parks Co. common stock each having

On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800 shares of Parks Co. common stock each having a par value of $45 and a market value of $54. There is $3,600 unamortized discount on the bonds. Using the book value method, Parks would record...

a $10,800 increase in paid-in capital in excess of par.

a $7,200 increase in paid-in capital in excess of par.

no change in paid-in capital in excess of par.

a $5,400 increase in paid-in capital in excess of par.

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