Question - In 2007, singer, Inc. issued for $103 per share, 40,000 shares of $100 par value convertible preferred stock. One share of preferred stock can be converted into three shares of Singer's $25 par value common stock at the option of the preferred stockholder. In August of 2008, 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 total amount should be credited to additional paid-in capital from common stock as a result of the conversion of the preferred stock into common stock?
a. $680,000
b. $520,000
c. $1,000,000
d. $1,120,000