On March 2, 2011, Ross Corporation issued 4,000 shares of 6 percent cumulative $100 par value preferred stock for $434,000. Each preferred share carried one nondetachable stock warrant which entitled the holder to acquire, at $17, one share of Ross $10 par common stock. On March 2, 2011, the market price of the preferred stock (without warrants) was $90 per share and the market price of the stock warrants was $15 per warrant. The amount credited to Paid-In Capital in Excess of Par-Preferred by Ross on the issuance of the stock was

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The preferred stock was issued at a price of $108.50 per share ($434,000 / 4,000 shares), which includes the value of the stock warrant. To calculate the value of the preferred stock without the warrant, we can first find the value of the warrant separately by multiplying the market price per warrant ($15) by the number of warrants attached to each share (1). This gives us a total warrant value of $15 per preferred share.

Next, we can subtract the value of the warrant from the total value of the preferred share ($108.50) to find the value of the preferred stock itself. This calculation gives us $93.50 per share ($108.50 - $15).

Since the preferred stock has a par value of $100, the amount credited to Paid-In Capital in Excess of Par-Preferred is the difference between the issue price and the par value. This gives us $6.50 per share ($93.50 - $100), or a total of $26,000 ($6.50 x 4,000 shares).

Therefore, the correct answer is C ($34,000 - $8,000 for the value of the warrants).

On March 2, 2011, Ross Corporation Issued 4,000 Shares of 6