Current Attempt in Progress Culver, Inc. is an SEC registrant, and its securities are thinly traded on NASDAQ (National Association of Securities Dealers Quotes). Culver, Inc. issued 10,000 units. Each unit consists of a $1,000 par, 16% subordinated debenture and 5 shares of $5 par common stock. The investment banker has retained 460 units as the underwriting fee. The other 9,540 units were sold to outside investors for cash at $1,135 per unit. Prior to this sale the 2-week ask price of common stock was $24 per share. Sixteen percent is a reasonable market yield for the debentures, and therefore the par value of the bonds is equal to the fair value. (a) Prepare the journal entry to record the previous transaction, under the following conditions. (Round answers to O decimal places, e.g. $38,487. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) (1) Employing the incremental method, assuming that the recent price quotes on the commont stock do not reflect fair value. (2) Employing the proportional method, assuming the recent price quotes on the common stock reflect fair value. 1. Cash Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stock 2. Cash Discount on Bonds Payable Bonds Payable Common Stock Paid-in Capital in Excess of Par - Common Stock