On June $30,2020,$ an interest payment date, $$1030000$ of Martinez Co$.$ bonds were converted into $25900$ shares of Martinez Co$.$ common stock each having a par value of $$5$ and a market value of $$55.$ There is $$350400$ unamortized discount on the bonds. Using the book value method, Martinez would record

no change in paid$-$in capital in excess of par.

a $$550100$ increase in paid$-$in capital in excess of par.

a $$350400$ increase in paid$-$in capital in excess of par.

a $$142340$ increase in paid$-$in capital in excess of par.