Business, 27.10.2019 03:43 Gigglygoose4181

Fogel co. has $4,000,000 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 $1,280,000 bonds exercised the conversion privilege. 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 $280,000. fogel should record, as a result of this conversion, a

a. credit of $217,600 to paid-in capital in excess of par.

b. credit of $192,000 to paid-in capital in excess of par.

c. credit of $89,600 to premium on bonds payable.

d. loss of $12,800.

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Fogel co. has $4,000,000 of 8% convertible bonds outstanding. each $1,000 bond is convertible into 3...

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