A Company Is About to Issue 1,000 New Shares of Stock

question 92

Multiple Choice

A company is about to issue 1,000 new shares of stock at a market price of $33 per share.If the par value per share is $4,the increase in capital surplus from this stock issue will be:

• A) $33,000.
• B) $4,000.
• C) $29,000.
• D) $32,000.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Full Costs

This refers to the comprehensive total amount that includes all relevant costs of production, including direct, indirect, fixed, and variable costs.

Cost of Goods Sold

The historical cost of products sold as reported in the income statement.