Question $13$ of $20$

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Wildhorse Co$.$ has $$4020000$ of $7\%$ convertible bonds outstanding. Each $$1000$ bond is convertible into $30$ shares of $$30$ par value common stock. The bonds pay interest on January $31$ and July $31.$ On July $31,2025,$ the holders of $$1206000$ bonds exercised the conversion privilege. On that date, the market price of the bonds was $105$ and the market price of the cormmon stock was $$35.$ The total unamortized bond premium at the date of conversion was $$287000.$ Wildhorse should record, as a result of this conversion, a

credit of $$91840$ to Premium on Bonds Payable.

loss of $$12060.$

credit of $$180400\mathrm{.}00$ to Paid$-$in Capital in Excess of Par.

credit of $$206700$ to Paid$-$in Capital in Excess of Par.