A Corporation Issues 50 "Packages" of Securities for $154 Per

Multiple Choice

A corporation issues 50 "packages" of securities for $154 per package. Each package consists of three shares of $5 par common stock and one share of $50 par preferred stock. If the market values of $40 per share for the common stock and $100 per share for preferred stock are known, the journal entry to record the sale would assign a total value to the preferred stock of

A) $3,500.
B) $4,200.
C) $5,775.
D) $6,000.