5. The Preferred Shares account has a balance of $100,000. There are 500 convertible preferred shares, each convertible to 4 common shares. On a day that the preferred shares have an average cost of $200 and a market value of $230, one half of the preferred shares are converted to common shares. Common shares are trading at $60. Which statement is true? a. b. $50,000. Retained Earnings will be debited by $2,500. The Common Shares account will be credited for An income statement account, Loss on Conversion, will be debited by $2,500. d. $60,000. The Common Shares account will be credited for