Question $11$ of $40$

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Carla Vista Co$.$ has $$3960000$ of $9\%$ convertible bonds outstanding. Each $$1000$ bond is convertible into $30$ shares of $$30$ par value common stock. The bonds pay interest on January $31$ and July $31.$ On July $31,2025,$ the holders of $$1188000$ bonds exercised the conversion privilege. On that date, the market price of the bonds was $106$ and the market price of the common stock was $$37.$ The total unamortized bond premium at the date of conversion was $$289000.$ Carla Vista should record, as a result of this conversion, a

$$ credit of $$205500$ to Paid$-$in Capital in Excess of Par.

loss of $$11880.$

credit of $$92480$ to Premium on Bonds Payable.

$$ credit of $$179000\mathrm{.}00$ to Paid$-$in Capital in Excess of Par.