Immediately after the last interest payment, Henry Company converted $3,200,000 of its bonds into 320,000 shares of $10 par value common stock. The unamortized premium on the bonds at the date of the conversion was $890,000. As a result of this conversion: O A. liabilities decreased by $4,090,000 and stockholders' equity decreased by $4,090,000 O B. liabilities decreased by $3.200,000 and stockholders' equity increased by $3,200,000 OC. liabilities decreased by $890,000 and stockholders' equity increased by $890,000 liabilities decreased by $4,090,000 and stockholders' equity increased by $4,090,000 D