Reference no: EM132982527

Problem 1: In 2020, Sunland Company, issued for $ 103 per share, 88500 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Sunland's $ 25 par value common stock at the option of the preferred stockholder. In August 2021, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $ 30 per share. What total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?

a. $ 2478000.
b. $ 1488000.
c. $ 1150500.
d, $ 2212500.