On October 1, a corporation issued 1,000 shares of its $20 par common and 2,000 shares of its $20 par preferred stock for a lump sum of $80,000. At this date, the corporation's common stock was selling for $36 per share and the preferred stock for $27 per share. The amount of proceeds allocated to the corporation's common stock should be 0 $36,000 O $54,000 O $48,000 $32,000 On January 1, Year 7, a company grants 10,000 stock options to an employee with an exercise price of $4 per option and a fair value of $8 per option. All of the options vest at the end of 5 years from the grant date. At the end of Year 7, the company's stock price was $10 per share. What amount of annual stock compensation cost should the company report for Year 7? $20,000 $16,000 O $8,000 0 $0