When bonds are converted to stock,any excess carrying value of the bonds over the par value of the stock is to be recorded as Additional Paid-in Capital.

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When bonds are converted to stock, any excess carrying value of the bonds over the par value of the stock is recorded as Additional Paid-in Capital. This is because the carrying value of the bonds represents the amount paid by investors above the par value of the bonds, and this amount is considered a capital contribution to the company when the bonds are converted to stock.

When Bonds Are Converted to Stock,any Excess Carrying Value of the Bonds