On July 1, 2020, Nehan Corp

Multiple Choice

On July 1, 2020, Nehan Corp. issued 4,000 of its no par common shares and 8,000 of its no par preferred shares for a lump sum of $ 200,000. At this date Nehan's common shares were selling for $ 24 per share and the preferred shares for $ 18 per share. Using the relative fair value method, the amount of the proceeds allocated to the preferred shares account should be

A) $ 100,000.
B) $ 110,000.
C) $ 120,000.
D) $ 72,000.