Lloyd Corporation has $2,100,000 of bonds outstanding with an unamortized premium of $105,000 immediately following the last interest payment. At that time, the bonds were converted into 270,000 shares of $8 par value common stock. As a result of this conversion A. liabilities increased by $1,995,000 and stockholders' equity increased by $1,995,000 O B. liabilities decreased by $2,.205,000 and stockholders' equity increased by $2,205,000. ?. Iiabilities decreased by $2,100,000 and stockholders' equity increased by $2.100,000 O D. liabilities decreased by $1,995,000 and stockholders' equity increased by $1,995,000