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Current Attempt in Progress On January 1,2023, when the fair value of its common...

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Accounting

Current Attempt in Progress
On January 1,2023, when the fair value of its common shares was $75 per share, Crane Corp. issued $11 million of 9% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into 4 common shares.
The debentures were issued for $11.5 million. The bond payment's present value at the time of issuance was $9.1 million and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1,2024, the corporation's common shares were split 2 for 1, and the conversion rate for the bonds was adjusted accordingly.
On January 1,2025, when the fair value of the corporation's common shares was $129 per share, holders of 30% of the convertible debentures exercised their conversion option. Crane applies ASPE and uses the straight-line method for amortizing any bond discounts or premiums.
Prepare the entry to record the original issuance of the convertible debentures.
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