Mega Computer's Financial Statements Show 1000 Shares of Common Stock

question 21

Multiple Choice

Mega Computer's financial statements show 1000 shares of common stock with a par value of $10 000, retained earnings of $20 000, additional paid in capital of $10 000, and long-term debt of $30 000. What is the book value of a share of stock?

• A) $70.00
• B) $10.00
• C) $40.00
• D) $30.00
• E) $50.00

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Definitions:

Timber

Wood that has been processed into beams and planks, a stage in the production process that precedes finished wood products.

Tin

A chemical element with the symbol Sn and atomic number 50, known for its malleability, ductility, and resistance to corrosion, used in various alloys and as a protective coating for other metals.

Shale

A fine-grained sedimentary rock that can be a source of petroleum and natural gas.

Conventionally Extracted Oil

Refers to oil obtained through traditional drilling methods where natural pressure pushes the oil to the surface or it is pumped out mechanically.