Ranier Company Is Authorized to Issue 10,000 Shares of 8

Ranier Company is authorized to issue 10,000 shares of 8%, $100 par value preferred stock and 500,000 shares of no-par common stock with a stated value of $1 per share. If Ranier issues 5,000 shares of preferred stock for land with an asking price of $575,000 and a market value of $550,000, which of the following would be the journal entry for Ranier to record? a.
$\begin{array}{lr}\text { Legal Expense } & 37,500 \\\text { Common Stock } && 9,000 \\\text { Paid-in Capital in Excess of Par - Preferred } && 28,500\end{array}$
b.
$\begin{array}{lll}\text { Land } & 500,000 & \\\text { Preferred Stock } & & 500,000\end{array}$

c.
$\begin{array}{lrr}\text { Land } & 575,000 & \\\text { Preferred Stock } && 500,000 \\\text { Paid-in Canital in Excess of Par-Preferred } && 75.000\end{array}$

d.
$\begin{array}{lrr}\text { Land } & 550,000 & \\\text { Preferred Stock } && 500,000 \\\text { Paid-in Capital Excess of Par-Preferred } && 50,000\end{array}$