Use the following information to answer Questions 20 through 22. A company has $3,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of common stock with a par value of S30. The bonds pay interest on January 1 and July 1. On July 1, 20X1 $900,000 of the bonds were converted into common stock by bondholders. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $210,000. Using the market value method and the market value of the bonds on the date of conversion, the company should record a(n): (a) Ordinary loss of $9,000. (b) Extraordinary loss of $9,000. (c) Ordinary gain of $18,000. (d) Extraordinary gain of $18,000. 20. Using the book value method, the company should record as a result of this conversion a(n): 21. (a) Credit of $153,000 to Paid In Capital in Excess of Par. (b) Credit of $135,000 to Paid In Capital in Excess of Par (c) Credit of $63,000 to Premium on Bonds Payable (d) Extraordinary loss of $9,000. 22. On July 1, 20x1, S600,000 of the bonds were called at 105 and retired. The company should record for this transaction a(n): (a) Credit of $42,000 to Premium on Bonds Payable. (b) Extraordinary loss of $12,000 (c) Extraordinary gain of $12,000. (d) Ordinary gain of $12,000