A company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If the company issues 5,000 shares of preferred stock for land with an asking price of $575,000 and a market value of $550,000, which of the following would be the journal entry for the company to record?

1. Dr Land 500,000

Cr Preferred Stock 500,000

2. Dr Land 550,000

Cr Preferred Stock 550,000

3. Dr Land 575,000

Cr Preferred Stock 500,000

Cr Paid-in Capital in Excess of Par 75,000

4. Dr Land 550,000

Cr Preferred Stock 500,000

Cr Paid-in Capital Excess of Par 50,000