DAE Parts Shop began business on January 1, 2011. The corporate charter authorized issuance of 20,000 shares of $5 par value common stock and 5,000 shares of $10 par value, 5 percent cumulative preferred stock. DAE issued 12,000 shares of common stock at $25 per share on January 2, 2011. What effect does the entry to record the issuance of stock have on total stockholders' equity?

a. increase of $120,000

b. increase of $150,000

c. increase of $300,000

d. increase of $340,000