Problem:

On July 1, 2008, an interest payment date, $30,000 of Young Co. bonds were converted into 600 shares of Young Co. common stock, each share having a par value of $45 and a market value of $54. There was $1,200 of unamortized discount on the bonds (after recording and paying the interest). Using the book value method conversion, Young would record

• no change in paid-in capital in excess of par
• an $1,800 increase in paid-in capital in excess of par
• an $2,400 increase in paid-in capital in excess of par
• an $3,600 increase in paid in capital in excess of par
• none of the above

Note: Please provide through step by step calculations.