Budget Leasing issued 500 shares of $20 par value convertible preferred stock at $22 per share. Each preferred share is converted to 7 shares of $4 par value common stock. The entry to record this conversion would include a

A) debit to Additional Paid-in Capital on Preferred Stock for $11,000.
B) credit to Common Stock for $11,000.
C) debit to Retained Earnings for $3,000.
D) credit to Additional Paid-in Capital from Preferred Stock Conversion for $3,000.


C

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