Fire Red Company is authorized to issue 20,000 shares of 8%, $100 par value preferred stock and 1,000,000 shares of no-par common stock with a stated value of $1 per share. If Fire Red issues 10,000 shares of preferred stock for land with an asking price of $1,020,000 and a market value of $1,080,000, which of the following would be the journal entry for Fire Red to record?

a. Land 1,000,000

Preferred Stock 1,000,000

b. Land 1,080,000

Preferred Stock 1,080,000

c. Land 1,200,000

Preferred Stock 1,000,000

Paid-in Capital in Excess of Par-Preferred 200,000

d. Land 1,080,000

Preferred Stock 1,000,000

Paid-in Capital Excess of Par-Preferred 80,000