If 10,000 Shares with Par Value of $15/share Are Issued

question 10

Multiple Choice

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed surplus" for financial statement purposes?

• A)$10,000
• B)$50,000
• C)$150,000
• D)$200,000

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Definitions:

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.

Short Run

A period in which at least one factor of production is fixed and cannot be fully adjusted.

AVC Curve

The average variable cost curve, which shows how the unit variable cost of production changes with the level of output.

Profit-Maximizing

The process or strategy of adjusting production and pricing to achieve the highest possible profit margins for a business or firm.