Question: Gomez Corporation issued $ 9 , 0 0 0 , 0 0 0 of 7 % , ten - year convertible bonds on July 1

Gomez Corporation issued $9,000,000 of 7%, ten-year convertible bonds on July 1,20X4 at 96.1 plus accrued interest. The bonds were dated April 1,20X4 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1,20X5, $1,800,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What should be the amount of the unamortized bond discount on April 1,20X5 relating to the bonds converted?

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