Bonds (Face Value = $24M) and 4M shares of common stock (Par Value = $1) are issued for $44M. Bonds’ fair value is $18M. Stocks’ fairy value cannot be determined. This transaction:

a. Increases paid-in capital by $22M

b. Increases paid-in capital-excess of par by $16M

c. Increases paid-in capital-excess of par by $22M

d. Increases paid-in capital-excess of par by $26M