Smith Co. has $2,500,000 of 8% convertible bonds outstanding. Each $1,000 bond is convertible into 30 shares of $30 par value common stock. The bonds pay interest on June 30 and December 31. On July 1, 2020, the holders of $800,000 bonds exercised the conversion privilege. The total unamortized bond premium at the date of conversion was $175,000. Smith should record, as a result of this conversion, a Select one: a. credit of $120,000 to Paid-in Capital in Excess of Par. b. loss of $8,000. c. credit of $56,000 to Premium on Bonds Payable. d. credit of $136,000 to Paid-In Capital in Excess of Par.