What is the amount credited to share premium upon conversion

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Problem 1: On December 31, 2021, PISTACHIO Company had outstanding ?20 million face value convertible bonds maturing on December 31, 2024. Interest is payable annually on December 31. Each ?1,000 bond is convertible into 60 shares of PISTACHIO's ?P10 par ordinary shares. The unamortized premium balance on December 31, 2021 is ?350,000. The balance of Share premium arising from bond conversion privilege is ?640,000. On this date, an individual holding 2,000 of the bonds exercised the conversion privilege when the market value of PISTACHIO's ordinary share was ?18. What is the amount credited to share premium upon conversion of the bonds?

Option 1: ? 899,000

Option 2: ? - 0 -

Option 3: ? 1,790,000

Option 4: ? 800,000

Reference no: EM132998735

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