Bruno's Has 7,000 Shares of Stock Outstanding with a Par

question 39

Multiple Choice

Bruno's has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $12 per share.The balance sheet shows $7,000 in the common stock account,$87,000 in the capital in excess of par account and $32,500 in the retained earnings account.The firm just announced a 50% (large) stock dividend.What is the value of the capital in excess of par account after the dividend?

• A)$58,000
• B)$61,500
• C)$87,000
• D)$96,500
• E)$100,000

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