Thornwood Partners began business on January 1, 2019. The corporate charter authorized issuance of 75,000 shares of $1 par value common stock and 8,000 shares of $3 par value, 10% cumulative preferred stock. On July 1, Thornwood issued 20,000 shares of common stock in exchange for 2 years' rent on a retail location. The cash rental price is $3,000 per month, and the rental period begins on July 1. What is the correct entry to record the July 1 transaction?
a. Debit to Cash, $72,000; credit to Prepaid Rent, $57,600
b. Debit to Prepaid Rent, $72,000; credit to Common Stock, $72,000
c. Debit to Prepaid Rent, $72,000; credit to Common Stock, $20,000; credit to Additional Paid-In Capital-Common Stock, $52,000
d. Debit to Prepaid Rent, $72,000; credit to Common Stock, $60,000; credit to Additional Paid-In Capital-Common Stock, $12,000.