Question: On January 1 , 2 0 2 1 , Bell Co . issued $ 1 0 million of 1 0 - year convertible bonds at

On January 1,2021, Bell Co. issued $10 million of 10-year convertible bonds at 105. On January 1,2026, the bonds were converted into common stock with a market value of $11 million. Upon conversion, Bell would recognize:
Book value methodMarket value methoda.no gain or lossno gain or lossb.no gain or losslossc.lossno gain or lossd.lossloss

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