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Pistol Corp. issued $20 million of 7%, 15-year convertible bonds at 102 on January 1,...

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Accounting

Pistol Corp. issued $20 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 20 shares of Pistol's no par common stock. Pistol recently issued similar, but non-convertible, bonds at 99.

What amount of premium or discount should Pistol record at issuance of the convertible bonds?

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

Enter a PREMIUM as a POSITIVE number and a DISCOUNT as a NEGATIVE number.

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