Exhibit 14-9 Marley, Inc

Exhibit 14-9 Marley, Inc. sold $500,000 of its ten-year 8% bonds at 96 on January 1, 2014. Interest is paid each January 1 and July 1 and straight-line amortization is used. Each $1,000 bond is convertible into 100 shares of $10 par common stock. One-half of the bonds were converted on January 1, 2019, when the market value of the stock was $14 per share.
-Refer to Exhibit 14-9. The entry to record the conversion using the book value method would include a

A) debit to Loss on Conversion for $5,000
B) debit to Retained Earnings for $5,000
C) debit to Discount on Bonds Payable for $5,000
D) credit to Additional Paid-in Capital from Bond Conversion for $5,000