On July 1 . Riverwalk Corporation issued 2,000 shares of its $10 par common and 4,000 shares of its $10 par preferred stock for a lump sum of $80,000 . At this date, Riverwalk's common stock was selling for $18 per share and the preferred stock for $13.50 per share. The amount of proceeds allocated to Riverwalk's preferred stock should be
a. $40,000.
b. $48,000.
c. $54,000.
d. $60,000.
B
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What will be an ideal response?
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