Cinnamon Company issues 4,000 shares of its $1 par common stock having a market value of $17 per share and 2,000 shares of its $2 par preferred stock for a lump sum of $80,000. What amount of the proceeds should be allocated to the paid-in capital account for preferred stock?

A. $36,000.

B. $64,000.

C. $8,000.

D. $12,000.