Montana City Company Began Business on January 1,2017 $\begin{array}{cc} \text { Common Stock} & \text { Preferred Stock } \\\end{array}$

Montana City Company began business on January 1,2017.The corporate charter authorized issuance of 500 shares of $1 par value common stock and 400 shares of $4 par value,3% cumulative preferred stock.What is the maximum amount that can be reported on the balance sheet for Common Stock and Preferred Stock,respectively,if all of the stock is issued?
$\begin{array}{cc} \text { Common Stock} & \text { Preferred Stock } \\\end{array}$

a.
$\begin{array}{cc}&&&\$500 &&&&& \$1,600\\\end{array}$

b.
$\begin{array}{cc}&&&\$5,000 &&&&& \$120\\\end{array}$
c.
$\begin{array}{cc}&&&\$500 & &&&&& \$120\\\end{array}$

d. Not enough information provided.