Conversion of Bonds

3. On January 1, Stunt Corp. had outstanding convertible bonds with a face value of $1,000,000 and an unamortized discount of $100,000. On that date, the bonds were converted into 100,000 shares of $1 par stock. The market value on the date of conversion was $12 per share. The transaction will be accounted for with the book value method. By what amount will Stunts stockholders equity increase as a result of the bond conversion?

A) $100,000

B) $900,000

C) $1,000,000

D) $1,200,000