When Nada and Rand decided to incorporate their partnership, the trial balance was as follows:

Debit

Credit

Cash

$60,000

Accounts Receivable (net)

35,000

Inventory

65,000

Equipment

130,000

Accounts Payable

$60,000

Nada, Capital

150,000

Rand, Capital

80,000

Total

$290,000

$290,000

The partnership's books will be closed, and new books will be used for N & R Corporation.

The following additional information is available:

1. The estimated fair values of the assets & liabilities are as follows:

Accounts Receivable

$38,000

Inventory

70,000

Equipment

125,000

Accounts Payable

58,000

2. All assets and liabilities are transferred to the corporation.

3. The common stock is $7 par. Nada and Rand receive a total of 30,000 shares.

4. Nada and Rand share profits and losses in the ratio 7:3.

The number of shares received by Nada & Rand are as follows:

Select one:

a. Nada 15,000, Rand 15,000.

b. Nada 19,533, Rand 10,467.

c. Nada 19,596, Rand 10,404.

d. Nada 21,000, Rand 9,000.