On June 30, 2021, Blair Industries had outstanding $82 million of 8% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 6 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2021, half the bonds were converted when Blair’s common stock had a market price of $40 per share. When recording the conversion, Blair should credit paid-in capital excess of par: 

Multiple Choice 

• $9 million 

• $7 million 

• $11 min 

• $13 million