Sunland Co$.$ has $$4050000$ of $6\%$ convertible bonds outstanding. Each $$1000$ bond is convertible into $30$ shares of $$30$ par value common stock. The bonds pay interest on January $31$ and July $31.$ On July $31,2025,$ the holders of $$1296000$ 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 $$35.$ The total unamortized bond premium at the date of conversion was $$286000.$ Sunland should record, as a result of this conversion, a

credit of $$221760$ to Paid$-$in Capital in Excess of Par.

loss of $$12960.$

credit of $$92160$ to Premium on Bonds Payable.

credit of $$195360\mathrm{.}00$ to Paid$-$in Capital in Excess of Par: