After recording interest and amortization an entity converted P5,000,000 of 12% convertible bonds inti 50,000 shares of P50 par value. On the conversion date, the carrying amount of the bonds payable was P6,000,000 the market value of the bonds was P6,500,000 and the share was publicly trading at P150. The entity incurred P100,000 in connection with the conversion. When the bonds were originally issued, the equity component was recored at P1,500,000. What amount of share premium should recorded as a result of the conversion. a.) 5,000,000 b.) 3,500,000 c.) 4,900,000 d.) 3,400,000