Bagwell's Net Income for the Year Ended December 31, Year

question 160

Multiple Choice

Bagwell's net income for the year ended December 31, Year 2 was $185,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2. $\begin{array}{|l|l|l|}\hline \text { At December } 31 &{\text { Y ear 2 }} & \text { Y ear 1 } \\\hline \text { Common Stock, } \$ 5 \text { par value } & \$ 500,000 & \$ 450,000 \\\hline \text { Paid-in capital in excess of par } & 948,000 & 853,000 \\\hline \text { Retained earnings } & 688,000 & 582,000 \\\hline\end{array}$

• A)$145,000.
• B)$50,000.
• C)$95,000.
• D)$106,000.
• E)$185,000.

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