Becker Corporation has issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $74,000 cash. Read each set of facts below, and answer the following questions:

Using the incremental method, give the entry for the issuance assuming the par value of the common stock was $5 and the fair value was $24. Each valuation is on a per-share basis. There is a ready market for the common stock, but there is no ready market for the preferred stock.

		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 48,000 Cr. Preferred Stock 16,000 Becker Corporation does not record PIC - Preferred stock because there is no active market.
		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 45,500 Cr. Preferred Stock 16,000 Cr. PIC - Preferred Stock 2,500
		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 64,000 Becker Corporation cannot issue the preferred stock because there is no active market for it.
		Dr. Cash 74,000 Cr. Common Stock 10,000 Cr. PIC - Common Stock 38,000 Cr. Preferred Stock 16,000 Cr. PIC - Preferred Stock 10,000