On July 1, 2013, an interest payment date, $120,000 of Tally Corporation bonds were converted into 3,100 shares of Tally Corporation common stock, each having a par value of $35 and a market value of $42. There is $5,700 unamortized discount on the bonds. Using the book value method, Tally would record:
a) a $5,300 increase in paid-in capital in excess of par
b) a $5,800 increase in paid-in capital in excess of par
c) a $11,500 increase in paid-in capital in excess of par
d) a $15,900decrease in paid-in capital in excess of par