Fogel Co. has $3,000,000 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 January 31 and July 31. On July 31, 2014, the holders of $960,000 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 unamortized bond premium on the bonds converted at that date was $67,200. Fogel should record, as a result of this conversion

a. a credit of $163,200 to APIC-CS.

b. a credit of $144,000 to APIC-CS.

c. a credit of $67,200 to Premium on Bonds Payable.

d. a loss of $9,600.