Sunland Company issues 31000 shares of $50 par value preferred stock for cash at $70 per share. In the stockholders’ equity section, the effects of the transaction above will be reported

Sunland Company issues 31000 shares of $50 par value preferred stock for cash at $70 per share. In the stockholders’ equity section, the effects of the transaction above will be reported

entirely within the capital stock section.

under both the capital stock and additional paid-in capital sections.

entirely within the additional paid-in capital section.

entirely under the retained earnings section.