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What amount should be credited to common shares

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Question - On January 1, 20X5, Aria Inc. issued 20,000 convertible preferred shares for $960,000. The value of the preferred shares without the conversion option was $44 per share. On September 26, 20X6, a total of 8,000 preferred shares were converted. The fair market value of the conversion option at this date was $5. What amount should be credited to common shares on September 26, 20X6?

a. $352,000

b. $384,000

c. $32,000

d. $392,000

Reference no: EM132565686

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