What the amount of proceeds allocated to preferred shares

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Problem 1: 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. $120,000.
b. $110,000.
c. $72,000.
d. $100,000.

Reference no: EM132937198

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