Vaughn Manufacturing has $4010000 of 8% convertible bonds outstanding. Each $1,000 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, 2018, the holders of $1300000 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 $37. The total unamortized bond premium at the date of conversion was $283000. Vaughn should record, as a result of this conversion, a credit of $194960 to Paid-in Capital in Excess of Pa O credit of $90560 to Premium on Bonds Payable. loss of $13000 credit of $220560 to Paid-in Capital in Excess of Par