On December 31, 2019, Dare Corporation had outstanding 8%, $2,000,000 face value convertible bonds maturing on December 31, 2023. Interest is payable annually on December 31. Each $1,000 bond is...

On December 31, 2019, Dare Corporation had outstanding 8%, $2,000,000
face value convertible bonds maturing on December 31, 2023. Interest is
payable annually on December 31. Each $1,000 bond is convertible into
60 shares of Dare's $10 par value common stock. On January 2, 2021,
when the Premium on Bonds Payable account balance was $45,000, an
individual holding 200 of the bonds exercised the conversion privilege
when the market value of Dare's common stock was $18 per share. Using
the book value method, Dare's entry to record the conversion should
include a credit to Additional Paid-in Capital of:
a. $80,000
b. $84,500
c. $96,000
d. $125,000