At the start of the year, a company had 60,000 ordinary shares of 50p each in issue,

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At the start of the year, a company had 60,000 ordinary shares of 50p each in issue, fully paid, and there was a balance of £170,000 on the share premium account. During the year, the company made a bonus issue of one share for every five held, using the share premium account. What are the correct balances after the bonus issue?

(A) Ordinary share capital £72,000, Share premium £158,000

(B) Ordinary share capital £36,000, Share premium £164,000

(D) Ordinary share capital £66,000, Share premium £164,000

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