Fogel Co$.$ has $$5,000,000$ of $8\%$ convertible bonds outstanding that was issued at par. Each $$1,000$ bond is convertible into $30$ shares of $$30$ par value common stock. On July $31,2018,$ the holders of all $$5,000,000$ 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.$ Fogel should record, as a result of this conversion, a

a$)$ credit of $$400,00$ to Paid$-$in Capital in Excess of Par.

b$)$ loss of $$12,800.$

c$)$ credit of $$280,000$ to Premium on Bonds Payable.

d$)$ credit of $$500,000$ to Paid$-$in Capital in Excess of Par.