A company sold 100,000 shares of its own $10 par value preferred stock for $2,060,000. The entry to record the sale would include a

Select one:

a. A credit to Preferred Stock, Par Value, of $1,000,000 and a credit to Treasury Stock of $1,060,000. Cash would be debited $2,060,000.

b. A credit to Preferred Stock, Par Value, of $2,060,000. Cash would be debited $2,060,000.

c. A debit to Preferred Stock, Par Value, of $1,000,000 and a debit to Preferred Stock, Additional Paid-in Capital, of $1,060,000. Cash would be credited $2,060,000.

d. A credit to Preferred Stock, Par Value, of $1,000,000 and a credit to Preferred Stock, Additional Paid-in Capital, of $1,060,000. Cash would be debited $2,060,000.