Which of the Following Methods Should Be Used to Account

Multiple Choice

Which of the following methods should be used to account for the conversion of preferred stock to common stock? $\begin{array}{lll}& \text {Book Value}& \text {Market Value}\\\text { I. } & \text { Yes } & \text { No } \\\text { II. } & \text { Yes } & \text { Yes } \\\text { III. } & \text { No } & \text { Yes } \\\text { IV } & \text { No } & \text { No }\end{array}$

A) I
B) II
C) III
D) IV