Reference no: EM132479007

Question - Johannesburg Corp. has two issues of securities outstanding: no par value common shares and 7% convertible bonds with a par value of $8616766. Bond interest payment dates are June 30 and December 31. The conversion clause in the bond indenture entitles the bondholders to receive 47 common shares in exchange for each $1000 bond. The value of the equity portion of the bond issue is $44067. On June 30, 20x7, the holders of $1113101 par value bonds exercise the conversion privilege. The market price of the bonds on that date is $1100 per bond and the market price of the common shares is $33. The total unamortized bond discount at the date of conversion is $455570. In applying the book value method, what amount should Johannesburg credit to Common Shares as a result of this conversion?