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In 2024, Cullumber, Inc. issued 86000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Cullumber's $25 par value common stock at the option of the preferred stockholder. In August 2025, 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 amount will be credited to additional paid-in capital from common stock as a result of the conversion? O $2322000 O $1032000 O $1376000 O $2150000

In 2024, Cullumber, Inc. issued 86000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Cullumber's $25 par value common stock at the option of the preferred stockholder. In August 2025, 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 amount will be credited to additional paid-in capital from common stock as a result of the conversion? O $2322000 O $1032000 O $1376000 O $2150000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In 2024, Cullumber, Inc. issued 86000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Cullumber's $25 par value common stock at the option of the preferred stockholder. In August 2025, 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 amount will be credited to additional paid-in capital from common stock as a result of the conversion? O $2322000 O $1032000 O $1376000 O $2150000
Transcribed Image Text:In 2024, Cullumber, Inc. issued 86000 shares of $100 par value convertible preferred stock for $102 per share. Each share of preferred stock can be converted into three shares of Cullumber's $25 par value common stock at the option of the preferred stockholder. In August 2025, 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 amount will be credited to additional paid-in capital from common stock as a result of the conversion? O $2322000 O $1032000 O $1376000 O $2150000
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