Allocation to the common stock


Bleeker Company issued 10,000 shares of its $5 par value common stock having a market value of $25 per share and 15,000 shares of its $15 par value preferred stock having a market value of $20 per share for a lump sum of $480,000. How much of the proceeds would be allocated to the common stock?

a. $50,000

b. $218,182

c. $250,000

d. $255,000

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Accounting Basics: Allocation to the common stock
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