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Echo Company issued a unit for $50. It combines 1 common share with 1 preferred...

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Accounting

Echo Company issued a unit for $50. It combines 1 common share with 1 preferred share. At the time of issue the market price of the preferred shares traded at $30 per share and the common shares traded at $15.
What is the cost base of the preferred and common shares?
What is the cost base of the preferred and common shares from each unit?
a) $30 for the preferred share and $15 for the common.
b) $45 for the preferred share and $45 for the common.
c) $45 for the preferred share and $13.50 for the common.
d) $33.33 for the preferred share and $16.67 for the common.
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