QUESTION 14 Which one of the following is the correct statement about Bond retirement by conversion? Oa. When conversion occurs, the bonds carrying value is transferred to cash and no gain is recorded. b. When conversion occurs, the bonds carrying value is transferred to equity and no gain or loss is recorded. c. When conversion occurs, the bonds carrying value is transferred to cash and no gain or loss is recorded. d. When conversion occurs, the bonds carrying value is transferred to equity and gain is recorded. QUESTION 15 If the contract rate of bonds is higher than the market rate, the bonds sell at price higher than par value. True False