When the conversion of bonds payable to common stock is recorded under the book value method and the par value of the common stock exceeds the book value of the bonds, the difference is recorded as a

Question $1$ options:

a$)$

debit to Loss on Conversion.

b$)$

debit to Discount on Bonds Payable.

c$)$

debit to Retained Earnings.

d$)$

debit to Additional Paid$-$in Capital$$Common Stock.