On January 1,2016,Ozark Minerals Issued $20 Million of 9%,10-Year Convertible

On January 1,2016,Ozark Minerals issued $20 million of 9%,10-year convertible bonds at 101.The bonds pay interest on June 30 and December 31.Each $1,000 bond is convertible into 40 shares of Ozark's no par common stock.Bonds that are similar in all respects,except that they are nonconvertible,currently are selling at 99.Ozark applies International Financial Reporting Standards (IFRS) .Upon issuance,Ozark should:

A) Credit bonds payable $19,800,000.
B) Credit premium on bonds payable $200,000.
C) Credit equity $200,000.
D) Credit bonds payable $20,200,000.