Kitty Corp issued 100 shares of $10 par common stock and 200 shares of $20 par preferred stock for a lump sum price of $8,000. At the time of issuance, the shares of preferred were trading in the market for $30/share and the market price of the common shares was unknown. How much of the $8,000 should be allocated to the issue of the common stock (i.e. common stock and paid in capital common stock combined)?

Select one:

$2,000

$4,000

$2,667

$1,143

$1,000