Frieds Corp

question 77

Multiple Choice

Frieds Corp. was organized on January 1, 2020, with the following authorized share capital: 20,000 common shares, no par value
15,000, $ .10, cumulative preferred shares, no par value
During 2020, the corporation issued 10,000 common shares for $ 700,000 and 10,000 preferred shares at $ 28 per share. On December 20, 2020, subscriptions for 1,000 preferred shares were taken at a purchase price of $ 30. These subscribed shares were paid for on January 2, 2021. What should Frieds report as total contributed capital on its December 31, 2020, balance sheet?

• A) $ 280,000
• B) $ 700,000
• C) $ 980,000
• D) $ 1,130,000

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Definitions:

Coercive Power

The power to force someone to do something against their will by using threats, punishment, or other forms of pressure.

Dynamic Variable

A concept or element that can change over time or in response to varying conditions within a given system.

Personal Power

The influence or authority a person possesses inherently, often derived from their expertise, skills, or personal characteristics rather than their formal position.

Position Power

The authority and influence a person possesses within an organization due to their role or title.