Jubilee Corp. has two issues of securities outstanding: no par value common shares and 8% convertible bonds with a par value of $8,000,000. Bond interest payment dates are June 30 and December 31. The conversion clause in the bond indenture entitles the bondholders to receive 40 common shares in exchange for each $1,000 bond. The value of the equity portion of the bond issue is $60,000. On June 30, 2020, the holders of $1,200,000 par value bonds exercise the conversion privilege. The market price of the bonds on that date is $1,100 per bond and the market price of the common shares is $35. The total unamortized bond discount at the date of conversion is $500,000. In applying the book value method, what amount should Jubilee credit to Common Shares as a result of this conversion?

a) $1,284,000

b) $1,134,000

c) $1,116,000

d) $1,125,000