A Firm Has $7,500,000 in Its Common Stock Account and $2,500,000

question 23

Multiple Choice

A firm has $7,500,000 in its common stock account and $2,500,000 in its retained earnings account.The firm issued 100,000 shares of common stock.What was the original issue price if only one stock issue has ever been sold?

• A) $75 per share
• B) $25 per share
• C) $100 per share
• D) Not enough information to tell

---

Definitions:

Commercial Transactions

Deals or agreements between parties that involve the exchange of goods, services, or funds in the course of business operations.

Common Law

A legal system characterized by judicial decisions that are recognized as binding, forming a body of law developed through court decisions over time.

Checking Account

A bank account that allows depositors to write checks and make withdrawals, often used for daily financial transactions.

Drawer's Account

Refers to the account from which a check is drawn; the account belongs to the drawer (the person who writes the check).