On July 1, Year 1, after recording interest and amortization, Wake Company's shareholders converted $1,000,000 of its 10% convertible bonds into 50,000 shares of its $1 par value common stock. On the conversion date, the carrying amount of the bonds was $1, 500,000, the market value of the bonds was $1, 400,000, and wake's common stock was publicly trading at $40 per share. Using the book value method, what amount of additional paid-in capital should Wake record as a result of the conversion? $500,000 $1, 500,000 $1, 950,000 $1, 450,000