Manning Company Issued 10,000 Shares of Its $5 Par Value

Multiple Choice

Manning Company issued 10,000 shares of its $5 par value common stock having a fair value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair value of $20 per share for a lump sum of $530,000. How much of the proceeds would be allocated to the common stock?

A) $250,000
B) $240,909
C) $289,091
D) $281,563