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Use the book value method to record the conversion of $9 million of bonds into common stock with a $10 par value if a conversion

Use the book value method to record the conversion of $9 million of bonds into common stock with a $10 par value if a conversion occurred when the market price of the common was $24 per share, and total convertible debt outstanding amounted to $36 million with a carrying value $34 million. Assume each $1,000 bond can be converted into 20 shares of stock.

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