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  3. fogel co. has $5,000,000 of 8% convertible bonds o

Fogel Co. has $5,000,000 of 8% convertible bonds outstanding that was issued at par. Each...

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Accounting

Fogel Co. has $5,000,000 of 8% convertible bonds outstanding that was issued at par. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. On July 31,2018, the holders of all $5,000,000 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. Fogel should record, as a result of this conversion, a
a) credit of $400,00 to Paid-in Capital in Excess of Par.
b) loss of $12,800.
c) credit of $280,000 to Premium on Bonds Payable.
d) credit of $500,000 to Paid-in Capital in Excess of Par.
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