On November 25, Astoria Corporation issued 60,000 shares of its $5 par value common stock for $10 per share.On December 31, Astoria Corporation's common stock was trading at $15 per share.Assuming Astoria Corporation did not issue any other common stock, how does the increase in the market value of itsoutstanding stock affect Astoria?Select one:O a. Astoria should recognize additional net income for Year 1 of $5 per share, or $300,000O b.Paid-in capital at December 31, is $900,000 (i.e., 60,000 shares times $15 per share).O c. Each shareholder must pay an additional $5 per share to AstoriaO d. This increase in market value of outstanding stock is not recorded in the financial statements of JuniperCorporation

The market value per share indicates the current selling price of the share. The face value or the…

Answered: On November 25, Astoria Corporation…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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