Dalton Co. has $6,000,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on December 31. On December 31, 2019, the holders of $1,600,000 bonds exercised the conversion privilege. On that date the market price of the bonds was 105 and the market price of the common stock was $36. The total unamortized bond premium at the date of conversion was $420,000. Fogel should record, as a result of this conversion, a

a. credit of $1,020,000 to Paid-in Capital in Excess of Par.

b. credit of $180,000 to Paid-in Capital in Excess of Par.

c. credit of $420,000 to Premium on Bonds Payable.

d. loss of $180,000.