DAE Parts Shop began business on January 1, 2018. The corporate charter authorized issuance of 20,000 no par value common shares and \(5,000 \$ 10\) stated value, \(5 \%\) cumulative preferred shares. DAE issued 12,000 common shares at \(\$ 25\) per share on January 2, 2018. What effect does the entry to record the issuance of shares have on total shareholders' equity?

a. increase of \(\$ 120,000\)

b. increase of \(\$ 150,000\)

c. increase of \(\$ 300,000\)

d. increase of \(\$ 340,000\)