Following is thestockholders' equitysection from ABC Company's balancesheet as of Dec 31,Yr 1: STOCKHOLDERS' EQUITYCommon stock: $0.45 par value,authorized 600,000shares; 175,000 shares issued: $78,750Additional paid-in capital: 532,000Retained earnings: 79,500Treasury stock: (180,000)Total stockholder's equity: $510,250a) At the time the common stock wassold, what was the cost of eachcommon stock sold?b) Compute the average price at whichABC Company issued its commonstock shares:c) Compute the number of commonstock shares outstanding as of Dec 31,Yr 1.

Issued stock = Par value + paid in capital Outstanding shares = Issued shares- Treasury stock

Answered: equity Following is the stockholders'…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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