At the end of $2017,$ Dennis Corp. had the following information available regarding its convertible preferred stock:

Convertible Preferred Stock: $$25$ par, $2,000$ shares outstanding $---$ $$50,000$

Additional Paid$-$in Capital $-$Preferred stock $200,000$

At the start of $2018,$ all shares of preferred stock were converted into $2,000$ shares of $$1$ par common stock when the common stock was worth $$250$ per share.

Assuming Dennis uses the book value method, by how much should the "Additional Paid$-$in Capital $-$ Common Stock" account be increased when the preferred shares are converted?

Select one:

a$.$ $$250,000$

b$.$ $$500,000$

c$.$ $$50,000$

d$.$ $$200,000$

e$.$ $$248,000$