Nolan Corporation has outstanding convertible bonds with a face value of $15,000 and a current book value of $17,500. Each $1,000 bond is convertible into 25 shares of common stock (par value $5 per share). All the bonds are converted into common stock when the market value of Nolan Corporation's common stock is $50 per share. Using the book value method, prepare the journal entry for Nolan to record the conversion.
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