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Petrenko Corporation has outstanding 2,240 $1,000 bonds, each convertible into 50 shares of $14 par value common stock. The bonds are converted on December 31,

Petrenko Corporation has outstanding 2,240 $1,000 bonds, each convertible into 50 shares of $14 par value common stock. The bonds are converted on December 31, 2012, when the unamortized discount is $30,000 and the market price of the stock is $21 per share. Record the conversion using the book value approach.

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