Clay Corp. had $600,000 convertible 8% bonds outstanding at June 30. Each $1,000 bond was convertible into 10 shares of Clay's $50 par value common stock. On July 1, the interest was paid to bondholders, and the bonds were converted into common stock, which had a fair market value of $75 per share. The unamortized premium on these bonds was $12,000 at the date of conversion. Under the book value method, this conversion increased Common Stock and Additional Paid-in Capital respectively by

a. $300,000, $312,000

b. $600,000, $ 12,000

c. $306,000, $306,000

d. $450,000, $162,000