A company issues 1.12 million shares of preferred stock with a par value of $8.00 at its market price of $32.00 per share. The issuance should be recorded with a debit to Cash for:

a. $8.96 million and a credit to Preferred Stock for $8.96 million.

b. $26.88 million, a credit to Additional Paid-in Capital for $8.96 million, and a credit to Preferred Stock for $35.84 million.

c. $35.84 million, a credit to Preferred Stock for $8.96 million, and a credit to Additional Paid-in Capital for $26.88 million.

d. $35.84 million and a credit to Preferred Stock for $35.84 million.