A Corporation Has the Following Account Balances: Common Stock, $1

question 189

Multiple Choice

A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in Capital in Excess of Par Value, $2,700,000.Based on this information, the

• A)legal capital is $2,780,000.
• B)number of shares issued is 80,000.
• C)number of shares outstanding is 2,780,000.
• D)average price per share issued is $3.48.

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Definitions:

Mortgage Issued

The lending of funds by a financial institution to an individual or organization for the purchase of real estate, secured by the property itself.

Upgrade Cost

The expense incurred to improve the quality, features, or performance of an asset, product, or system beyond its original specifications.

Overhaul

A comprehensive inspection, maintenance, and repair process to restore equipment, machines, or systems to optimum working condition.

Extraordinary Repairs

Large, infrequent expenditures that extend the useful life of an asset beyond its original forecast.