Answer:
$900
Explanation:
As provided, we need to use the market value method.
Face value of bonds to be converted = $9,000
Further for each $1,000,
30 shares shall be issued.
Total number of shares to be issued =[tex]\frac{9,000}{1,000}\times 30[/tex] = 180 shares.
Market value of share = $25 per share
Par value = $20
Additional paid in value for each share = $25 - $20 = $5
Thus, on conversion
Paid in capital = [tex]180 shares \times 20 dollars each = 3,600 dollars[/tex]
Additional paid-in capital = 180 shares [tex]\times[/tex] $5 each = $900
