Rainer Corp. has 400,000 shares of $20 par value common stock outstanding throughout 20x2. In addition, the corporation has 500, $1,000 5% bonds outstanding that were issued at par in 20x0. Each 1,000 bond is convertible into 30 shares of common stock. During 20x2, the corporation earned 600,000 of net income. Tax rate is 30%

Assume that the bonds were issued at a premium, instead of being issued at par. Assume that 100 of the bonds were converted to common stock in 20x3. On the conversion date, the bonds had a book value of 103,000

Record the Conversion. Please show work