Anole Company Anole Company Was Incorporated as a New Business on January

question 136

Multiple Choice

Anole Company
Anole Company was incorporated as a new business on January 1, 2015.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock.On January 1, 2015, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31, 2015, was $375,000.
-Refer to the information about Anole Company.
The amount of Anole's total contributed capital at December 31, 2015, is

• A)$ 60,000.
• B)$120,000.
• C)$180,000.
• D)$555,000.

---

Definitions:

Personally Liable

The legal responsibility of an individual to fulfill a debt or obligation from their own assets.

Partnership Debt

Financial obligations for which all partners in a partnership are jointly and severally liable.

New Ovens

Recently manufactured or acquired cooking appliances designed for baking, heating, or drying food.

Capital Contribution

It is the amount of money or assets that an investor puts into a company in exchange for part ownership or a stake in the company.