During 2019, Bradley Corporation issued for $110 per share, 5,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into 3 shares of Bradley’s $25 par value common stock at the option of the preferred shareholder. On December 31, 2020, all of the preferred stock was converted into common stock. The market value of the common stock at the conversion date was $40 per share. what amount should be credited to the Common Stock account on December 31, 2020? a. $375,000 c. $550,000 b. $500,000 d. $600,000
During 2019, Bradley Corporation issued for $110 per share, 5,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into 3 shares of Bradley’s $25 par value common stock at the option of the preferred shareholder. On December 31, 2020, all of the preferred stock was converted into common stock. The market value of the common stock at the conversion date was $40 per share. what amount should be credited to the Common Stock account on December 31, 2020?
a. $375,000 c. $550,000 b. $500,000 d. $600,000
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