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Petrenko Corporation has outstanding 2,470 $1,200 bonds, each convertible into 52 shares of $15 par value common stock. The bonds are converted on December 31,

Petrenko Corporation has outstanding 2,470 $1,200 bonds, each convertible into 52 shares of $15 par value common stock. The bonds are converted on December 31, 2014, when the unamortized discount is $31,570 and the market price of the stock is $21 per share. Record the conversion using the book value approach.

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