On January 1, 2019, Cocker Issued 10,000 Additional Shares of Common

question 22

Multiple Choice

On January 1, 2019, Cocker issued 10,000 additional shares of common stock for $35 per share.Popper acquired 8,000 of these shares.How would this transaction affect the additional paid-in capital of the parent company?

• A) Increase it by $28,700.
• B) Increase it by $16,800.
• C) $0.
• D) Increase it by $280,000.
• E) Increase it by $593,600.

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Definitions:

Infinite Population

A theoretical concept where the size of the population is limitless or indefinitely large.

Mean

The average of a set of numbers, calculated by dividing the sum of the values by the number of values.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how spread out the values are.

Statistical Inference

The process of using data obtained from a sample to make estimates or test hypotheses about the characteristics of a population.