James Company has outstanding 3,000, $1,000 bonds. Each bond is convertible into 50 shares of $12 par value common stock. The bonds are converted on December 31, 2018. The unamortized discount is $40,000 and the market price of the stock is $35 per share. Record the conversion of the bonds for James Company.

Financial Reporting, Financial Statement Analysis and Valuation
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ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter7: Financial Activities
Section: Chapter Questions
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James Company has outstanding 3,000, $1,000 bonds. Each bond is convertible into 50 shares of $12 par value common stock. The bonds are converted on December 31, 2018. The unamortized discount is $40,000 and the market price of the stock is $35 per share. Record the conversion of the bonds for James Company.

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What was the calculation to get the Loss on Conversion of Bonds for $2,210,000? 

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