Taylor Corporation Issues 20000 Shares of $50 Par Value Preferred

Multiple Choice

Taylor Corporation issues 20000 shares of $50 par value preferred stock for cash at $90 per share. In the stockholders' equity section the effects of the transaction above will be reported

A) entirely within the capital stock section.
B) entirely within the additional paid-in capital section.
C) under both the capital stock and additional paid-in capital sections.
D) entirely under the retained earnings section.