XYZ Inc. issued 600 common shares and 200 preferred shares for a single lump sum amount of $20,000. The fair market value of the common shares on the date of issue was $23.50 per share. No current market price was available for the preferred shares. How muchof the proceeds received should be allocated to the preferred shares on the date of issue ? (3 marks)

A.

$4,000

B.

$4,400

C.

$5,900

D.

$8,000