Decor Inc. issued $12 million of $1 par preferred stock on February 1,2022 . The company issued 1 million shares. Assume that the holder of the preferred shares has the option to require redemption. Requirements a. How would Decor account for the preferred stock dividends? b. What is the journal entry when the firm issued the preferred shares? Requirement a. How would Decor account for the preferred stock dividends? If Decor were a U.S. GAAP reporter then A. the entire proceeds would be classified as equity. Dividends are a reduction of equity. B. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at the present value of an annuity. C. the entire proceeds would be classified as liability. Dividends are a reduction of equity. D. the shares would be classified as equity and the fixed dividend characteristic of the share would be recorded as a liability at its nominal value. Requirement b. What is the journal entry when the firm issued the preferred shares? (Record debits first, then credits. Exclude explanations from any journal entries. Enter amounts in dollars instead of millior Additional Paid-in Capital in Excess of Par - Common Additional Paid-in Capital in Excess of Par - Preferred Cash Cash Dividend Payable Common Stock - Par Common Stock - no par Miscellaneous Expense Preferred Stock (Equity) Preferred Stock (Liability) Treasury Stock