In 2012, Wywick Inc. issued 100 shares of $10 par common stock and 250 shares of $10 par value preferred stock for a lump sum total of $3,500 in exchange for legal services. The common stock was selling actively for $15 per share at the time. Because no preferred stock had been issued previously, the preferred had no established market value. How should the $3,500 be allocated between common and preferred?

Common Preferred

a. 3500 0

b. 1750 1750

c. 1000 2500

d. 1500 2000