Piper Company issued $500,000 of 12%, $1,000 face amount bonds with one detachable stock warrant per bond. A credit of $10,000 was made to paid-in capital-stock warrants. Each warrant granted an option to buy one share of $60 par value common stock for $80 per share. If one-half of these warrants are exercised when the market price is $110 per share, the journal entry to record the transaction should include a

A. Credit to additional paid-in capital for $20,000.

B. Credit to common stock at par for $30,000.

C. Credit to paid-in capital-stock warrants for $5,000.

D. Credit to additional paid-in capital for $10,000.