Business, 25.11.2021 14:00 23jaywilliams

Sunland Company has $4050000 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, 2021, the holders of $1250000 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 $288000. Sunland should record, as a result of this conversion: a. a loss of $12500.
b. credit of $188680 to Paid-in Capital in Excess of Par.
c. credit of $92160 to Premium on Bonds Payable.
d. credit of $214280 to Paid-in Capital in Excess of Par.

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Sunland Company has $4050000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible in...

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