A corporation reported the following in their balance sheet: Common stock, $1 par, 100,000 shares authorized, ? shares issued Additional paid-in-capital Retained Earnings Treasury Stock (1,000 shares at cost) $40,000 $160,000 100,000 (6,000) $294,000 Total shareholders' equity What is the average price paid by the stockholders for a share of common stock? A. $1.00 B. $7.35 C. $6.00 D. $5.00

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 12MC: A corporation issued 100 shares of $100 par value preferred stock for $150 per share. The resulting...
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A corporation reported the following in their balance sheet:
Common stock, $1 par, 100,000 shares
authorized, ? shares issued
Additional paid-in-capital
Retained Earnings
Treasury Stock (1,000 shares at cost)
$40,000
$160,000
100,000
(6,000)
$294,000
Total shareholders' equity
What is the average price paid by the stockholders for a share
of common stock?
A. $1.00
B. $7.35
C. $6.00
D. $5.00
Transcribed Image Text:A corporation reported the following in their balance sheet: Common stock, $1 par, 100,000 shares authorized, ? shares issued Additional paid-in-capital Retained Earnings Treasury Stock (1,000 shares at cost) $40,000 $160,000 100,000 (6,000) $294,000 Total shareholders' equity What is the average price paid by the stockholders for a share of common stock? A. $1.00 B. $7.35 C. $6.00 D. $5.00
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