Use the following stockholders' equity section of Marcy Company on December 31, 2004 to answer questions 45 through

50. Treat each question independent of the other questions - so your answer to question 46 should not be influenced by the

answer to question 45, and so on:

Preferred Stock - 6% cumulative, $20 par value, 10,000 shares authorized, 5,000 shares issued and outstanding . .$100,000

Contributed Capital in excess of par value, Preferred Stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .250,000

Common Stock, $5 par value, 20,000 shares authorized, 10,000 shares issued and outstanding. . .. . . . . . . . . . . . . .50,000

Contributed Capital in excess of par value, Common Stock . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . 450,000

Total Contributed Capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 850,000

Retained Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150,000

Total Stockholders' Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

45. The average issue price per share of preferred stock must have been:

A)

$20.00

B)

$50.00

C)

$70.00

D)

$35.00

E)

$45.00

Please hurry I dont have much time the answer is C Please explain in details