On April 1, 2020, CASHEW Company sold 12,000 of its ₱1,000 11%, 5-year face value bonds at 96. The bonds are dated April 1, 2020 and interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 31, 2021, CASHEW took advantage of favorable prices of its shares to extinguish all of the bonds by issuing 800,000 shares of its ₱P10 par value ordinary shares. At this time, accrued interest was paid in cash. The company’s shares was selling for ₱30 per share on March 1, 2021. How much is the increase in share premium due to the conversion of CASHEW’s bonds? * a. ₱ 3,616,000 b. ₱0 c. ₱ 4,000,000 d. ₱ 3,520,000

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