What is the credit to additional paid in capital

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Reference no: EM132972026

Question - A Company issued a convertible bond payable Coupon rate 5.3% Issue price $725,000 Term 10 years on January 1, 20X1 as follows.

Bonds payable $700,000

Each $1,000 bond is convertible into 20 shares

Number of potential shares if 100% converted 14,000 shares

Bond conversion date December 31, 20X3

Bonds converted 30%

Required - What is the credit to additional paid in capital at the time of conversion on December 31, 20X3?

Reference no: EM132972026

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