On July 1, 2025, an interest payment date, $154000 of Blossom Co. bonds were converted into 3060 shares of Blossom Co. common stock, each having a par value of $45 and a market value of $54. There is $5800 of unamortized discount on the bonds. If the book value method is used, Blossom would record

1. no change in paid-in capital in excess of par.
2. an $17040 increase in paid-in capital in excess of par.
3. a $11240 increase in paid-in capital in excess of par.
4. a $10500 increase in paid-in-capital in excess of par.

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