On September 1, 2022 company A issued $90 million of 5% convertible bonds with premium. The bonds are due 2028. The bons are convertible at the option of the bondholder into no par common stick 80% of the convertible bonds issued by company A are converted at the time when the remaining unamortized premium is $3 million. The entry to record the conversion included a:

Debit to premium on convertible bonds payable for $3,000,000

Credit to common stock for $74,400,00

Credit to convertible bonds payable for $72,000,000

Credit to cash for $74,400,00