On January 1, 20X5, Aria Inc. issued bonds for $960,000. The bonds include 20,000 warrants giving the shareholder the right to purchase one common share for $14. The value of the bonds without the warrants attached would be $880,000. On September 26, 20X6, a total of 8,000 warrants were exercised. The fair market value of the warrants at this date was $5. What amount should be credited to common shares on September 26, 20X6?

a.

$144,000

b.

$40,000

c.

$112,000

d.

$32,000