Lerner Company Had the Following Transactions in 2015, Its First

question 13

Multiple Choice

Lerner Company had the following transactions in 2015, its first year of operations. • Issued 20,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $14.00 per share.
• Issued 1,000 shares of $100 par value preferred stock. Shares were issued at par.
• Earned net income of $35,000.
• Paid no dividends.
At the end of 2015, what is the total amount of stockholders' equity?

• A)$415,000
• B)$120,000
• C)$260,000
• D)$380,000

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Definitions:

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the fetus while removing waste products.

Breast Milk

The milk produced by a human mother's breasts, providing optimal nutrition for infants.

Immunoglobulin

A type of antibody produced by the immune system to fight infections and diseases.

Allergic Reaction

An immune response to a substance (allergen) that results in symptoms such as itching, swelling, and difficulty breathing.