On January 1, 2010, Leffler, Inc

Multiple Choice

On January 1, 2010, Leffler, Inc.sold $200, 000 of its convertible bonds at par.Conversion terms allow each $1, 000 bond to be converted into 40 common shares.On April 1, 2012, the company increases the conversion terms to 55 shares per bond if conversion takes place within 180 days.The conversion of all of the bonds took place on May 1, 2012.Fair market values of the common stock were as follows: January 1, $20; April 1, $30; and May 1, $25.The bond conversion expense would be recorded at

A) $ 60, 000
B) $ 75, 000
C) $ 90, 000
D) $105, 000