On January $1,2023,$ when the fair value of its common shares was $$84$ per share, Wildhorse Corp. issued $$11$ million of $7\%$ convertible debentures due in $20$ years. The conversion option allowed the holder of each $$1,000$ bond to convert the bond into $4$ common shares. The debentures were issued for $$11\mathrm{.}5$ million. The bond payment$$s present value at the time of issuance was $$9\mathrm{.}1$ million and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January $1,2024,$ the corporation$$s common shares were split $3$ for $1,$ and the conversion rate for the bonds was adjusted accordingly. On January $1,2025,$ when the fair value of the corporation$$s common shares was $$121$ per share, holders of $35\%$ of the convertible debentures exercised their conversion option. Wildhorse applies ASPE and uses the straight$-$line method for amortizing any bond discounts or premiums.