On January 1, 2008, Washington, Inc. issues 900 shares of $100 par convertible

preferred stock for $134/share. Each share of convertible preferred stock can be

converted into J. shares of $10 par value common stock.

If preferred shareholders convert 200 shares of preferred stock into common stock,

how much will Washington, Inc. record in the Common Stock account?

A. $0

B. $2,000

C. $6,000

D. $20,000

E. $26,800