20. The following information is available for Z Corporation: Preferred shares, $2.50 convertible, noncumulative, 5,000 shares issued $250,000 Common Shares, Unlimited number of shares authorized, 500,000 shares issued 1,000,000 Each preferred share is convertible into four common shares. During the year, 2,000 preferred shares were converted into common shares when the fair value of the common shares was $15 per share. The journal entry to record the conversion would be: a. Preferred Shares.. . 100,000 Common Shares.. 100,000 b. Preferred Shares.. 120,000 Common Shares.. 120,000 c. Preferred Shares. 120,000 Common Shares.. 100,000 Contributed Surplus from Conversion of Preferred Shares.. 20,000 d. Common Shares.. .100,000 Preferred Shares. 100,000