On July 1, 2008, an interest payment date, $60,000 of Risen Co. bonds were converted into 1,200 shares of Risen Co. common stock each having a par value of $45 and a market value of $54. There is $2,400 unamortized discount on the bonds. Using the book value method, Risen would record
A) no change in paid-in capital in excess of par.
B) a $3,600 increase in paid-in capital in excess of par.
C) a $7,200 increase in paid-in capital in excess of par.
D) a $4,800 increase in paid-in capital in excess of par.

Question

Quizplus · Accepted Answer

$60,000 - (1,200 × $45) - $2,400 = $3,600.

On July 1, 2008, an Interest Payment Date, $60,000 of Risen