Star Ltd. presents the following information from the Statement of Financial Position:

Equity
Capital (120,000120,000 shares of 11 each)	120,000120,000
Retained Profits	22,00022,000
Share premium	50,00050,000
Total Equity	192,000192,000

Star Ltd. issues 20,00020,000 ordinary shares for a price of 22. Considering the previous information and the economic transaction of issuing ordinary shares, which of the following statements is correct?

a.

The company increases cash in 20,00020,000 and share premium decreases in the same amount.

b.

The company decreases cash in 40,00040,000 and total equity remains unchanged.

c.

The company increases cash in 40,00040,000 and equity increases in the same amount.

d.

None of the answers is true.