Sylvan Heights Company issues 119,000 shares of preferred stock for $43 per share. The stock has a fixed dividend rate of 9% and a par value of $4 per share. The company records the issuance with a debit to Cash for

A $476,000, a debit for $4.64 million to Long-term Investments, a credit to Preferred Stock for $476,000, and a credit to Additional Paid-in Capital for $4.64 million.

B $476,000 and a credit to Preferred Stock for $476,000.

C $5.12 million, a credit to Preferred Stock for $476,000, and a credit to Additional Paid-in Capital for 4.64 million.

D $5.12 million and a credit to Preferred Stock for $5.12 million.

2. Anthem Inc. issues 200,000 shares of stock with a par value of $0.12 for $161 per share. Three years later, it repurchases these shares for $91 per share. Anthem records the repurchase in which of the following ways?

• Debit Stockholders' Equity for $32.20 million, credit Additional Paid-in Capital for $18.20 million and credit Cash for $18.20 million.

• Debit Treasury Stock for $18.20 million and credit Cash for $18.20 million.

• Debit Common Stock for $24,000, debit Additional Paid-in Capital for $18,176,000 and credit Cash for $18.20 million.

• Debit Common Stock for $24,000, debit Additional Paid-in Capital for $32,176,000 and credit Cash for $32.20 million

3.Columbia Clay, Inc. issues 1.05 million shares of preferred stock with a par value of $4.50 at its market price of $28.50 per share. The issuance should be recorded with a debit to Cash for:

• $29.93 million and a credit to Preferred Stock for $29.93 million.

• $25.20 million, a credit to Additional Paid-in Capital for $4.73 million, and a credit to Preferred Stock for $29.93 million.

• $29.93 million, a credit to Preferred Stock for $4.73 million, and a credit to Additional Paid-in Capital for $25.20 million.

• $4.73 million and a credit to Preferred Stock for $4.73 million.