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Pete Corp. issued $30 million of 7%, 15-year convertible bonds at 102 on January 1,...

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Accounting

Pete Corp. issued $30 million of 7%, 15-year convertible bonds at 102 on January 1, 2021. The bonds pay interest semiannually each June 30 and December 31. Each $1,000 bond is convertible into 50 shares of Pete's no par common stock. Pete recently issued similar, but non-convertible, bonds at 98.

61 % of the bonds were converted when the common stock had a price of $23/share and the remaining premium was $0.2 million ($200,000).

For what amount would Pete credit Common Stock when 61% of the bonds are converted?

Enter in dollars (e.g. enter $10 million as 10,000,000).

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