In 2024, Wildhorse, Inc. issued 90500 shares of $100 par value convertible preferred stock for $103 per share. Each share of preferred stock can be converted into three shares of Wildhorse's $20 par value common stock at the option of the preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $25 per share. What amount will be credited to additional paid-in capital from common stock as a result of the conversion? a) $3891500 b)$2896000 c) $3620000 d) $2534000
In 2024, Wildhorse, Inc. issued 90500 shares of $100 par value convertible preferred stock for $103 per share. Each share of preferred stock can be converted into three shares of Wildhorse's $20 par value common stock at the option of the preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of the common stock at the date of the conversion was $25 per share. What amount will be credited to additional paid-in capital from common stock as a result of the conversion? a) $3891500 b)$2896000 c) $3620000 d) $2534000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 5MC
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Question
Ef 339.
![In 2024, Wildhorse, Inc. issued 90500 shares of $100 par value convertible preferred stock for $103 per share. Each share
of preferred stock can be converted into three shares of Wildhorse's $20 par value common stock at the option of the
preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of
the common stock at the date of the conversion was $25 per share. What amount will be credited to additional paid-in
capital from common stock as a result of the conversion?
a) $3891500
b)$2896000
c) $3620000
d) $2534000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3631fdc4-a6f8-45b4-b882-1af2b93e9727%2F67dac272-f38d-4ed8-a29c-923ff8f6fdb4%2F03uxff6_processed.png&w=3840&q=75)
Transcribed Image Text:In 2024, Wildhorse, Inc. issued 90500 shares of $100 par value convertible preferred stock for $103 per share. Each share
of preferred stock can be converted into three shares of Wildhorse's $20 par value common stock at the option of the
preferred stockholder. In August 2025, all of the preferred stock was converted into common stock. The market value of
the common stock at the date of the conversion was $25 per share. What amount will be credited to additional paid-in
capital from common stock as a result of the conversion?
a) $3891500
b)$2896000
c) $3620000
d) $2534000
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