During 2012, Abysmal Company issued 50,000 convertible preference shares with P100 par value for P110per share. One preference share can be converted into three ordinary shares with P25 par value at the option of the preference shareholder. On December 31, 2012, when the market value of the ordinary share was P40 per share, all of the preference shares were converted. What amount should be credited respectively to ordinary share capital and share premium as a result of the conversion? a. 3,750,000 and 1,750,000 b. 3,750,000 and 2,250,000 c. 5,000,000 and 500,000 d. 6,000,000 and 0

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