Sylvan Heights Company Issues 200,000 Shares of Preferred Stock for $40

Multiple Choice

Sylvan Heights Company issues 200,000 shares of preferred stock for $40 per share.The stock has a fixed dividend rate of 5% and a par value of $3 per share.The company records the issuance with a debit to Cash for:

A) $8 million and a credit to Preferred Stock for $8 million.
B) $600,000 and a credit to Preferred Stock for $600,000.
C) $8 million,a credit to Preferred Stock for $600,000,and a credit to Additional Paid-in Capital for $7.4 million.
D) $600,000,a debit for $7.4 million to Long-term Investments,a credit to Preferred Stock for $600,000,and a credit to Additional Paid-in Capital for $7.4 million.