Suppose Google, Inc. called its convertible debt in 2017. Assume the following related to the transaction. The 8%, $3,900,000 par value bonds were converted into 487,500 shares of $1 par value common...

Suppose
Google, Inc.
called its convertible debt in 2017. Assume the following related to the transaction. The 8%, $3,900,000 par value bonds were converted into 487,500 shares of $1 par value common stock on July 1, 2017. On July 1, there was $24,000 of unamortized discount applicable to the bonds, and the company paid an additional $33,000 to the bondholders to induce conversion of all the bonds. The company records the conversion using the book value method.

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