On August 1, 2013, Ryan Corporation called its 10% convertible bonds for conversion. The $6,000,000 par bonds were converted into 240,000 shares of...

On August 1, 2013, Ryan Corporation called its 10% convertible bonds for conversion. The $6,000,000 par bonds were converted into 240,000 shares of $20 par common stock. On August 1, there was $525,000 of unamortized premium applicable to the bonds. The fair market value of the common stock was $20 per share. Ignore all interest payments.