Truman Crop. in an effort to raise money for expansion into new markets, issues 100,000 shares of its $2 par value common stock having a fair value of $18 per share and 15,000 shares of its $50 par value preferred stock having a fair value of $70 per share for a lump sum of $3,500,000.

What amount of the proceeds should be allocated to the preferred stock (both preferred stock and APIC-PS combined)?