When the conversion of bonds payable to common stock is recorded under the market value method and the market value of the common stock exceeds the book value of the bonds at date of conversion, the difference is recorded as a

A) debit to Retained Earnings.
B) debit to Loss on Conversion.
C) debit to Additional Paid-in Capital?Common Stock.
D) debit to Discount on Bonds Payable.


B

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