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What is the amount of the unamortized bond discount

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Question - On July 2, 2020, Martineau Ltd. issued $6,000,000 (par value), 9%, ten-year convertible bonds at 98. The bonds were dated April 1, 2020 with interest payable quarterly on July 1, October 1, January 1 and April 1. If the bonds had NOT been convertible, they would have sold for 96.1. The bond discount is amortized on a straight-line basis. On April 1, 2021, $1,200,000 of these bonds were converted into 500 no par common shares. Accrued interest was paid in cash at the time of conversion.

What is the amount of the unamortized bond discount on April 1, 2021 relating to the bonds that were converted?

a. $46,800

b. $44,400

c. $64,246

d. $43,200

Reference no: EM132649182

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