In Year 1, Gall Inc. issued 1,000 shares of $50 par value preferred stock at $60 per share. In Year 2, Gall Inc. converted all 1,000 shares of preferred stock by issuing 2,000 shares of $10 par value common stock. The common stock is trading at $26 per share at the time of conversion. In Year 2, at conversion, the journal entry prepared by Gall Inc. should include: CR: Additional Paid-in Capital-Common 40,000 ho DR: Preferred Stock 60,000 O CR: Common Stock 260,000 CR: Cash $60,000 ODR: Additional Paid-in Capital-Preferred 60,000