On july 1, year 1, after recording interest and amortization, wake company’s shareholders converted $1,000,000 of its 10% convertible bonds into 50,000 shares of its $1 par val

On july​ 1, year​ 1, after recording interest and​ amortization, wake​ company’s shareholders converted​ $1,000,000 of its​ 10% convertible bonds into​ 50,000 shares of its​ $1 par value common stock. on the conversion​ date, the carrying amount of the bonds was​ $1,500,000, the market value of the bonds was​ $1,400,000, and​ wake’s common stock was publicly trading at​ $40 per share. using the book value​ method, what amount of additional​ paid-in capital should wake record as a result of the​ conversion?