Monty Co. has $2400000 of 8% convertible bonds outstanding. Each $1000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on January 31 and July 31. On July 31, 2020, the holders of $600000 bonds exercised the conversion privilege. On that date the market price of the bonds was 106 and the market price of the common stock was $39. The total unamortized bond premium at the date of conversion was $112500. Monty should record, as a result of this conversion, a credit of $28125 to Premium on Bonds Payable. loss of $648000. O credit of $511875 to Paid-in Capital in Excess of Par. credit of $88125 to Paid-in Capital in Excess of Par.

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