On January 1, 2015, HTL Manufacturing Co. issued $120 million of 8% convertible bonds. due 2035 at 103. Each $1,000 bond is convertible in 40 shares of HTL no par common. The price of HTL shares at the time of bond issue was $30 per share.
1. In recording the bond issue following GAAP, HTL would credit equity by how much?
2. In recording the bond issue, how much discount on bonds payable would be recorded?