A Company Issued 60 Shares of $100 Par Value Stock

question 105

Multiple Choice

A company issued 60 shares of $100 par value stock for $7,000 cash.The total amount of contributed capital is:

• A)$100
• B)$600
• C)$1,000
• D)$6,000
• E)$7,000

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Definitions:

Income Tax Expense

The amount of money a company owes in taxes based on its taxable income for a given fiscal period.

Straight-Line Depreciation

A strategy for apportioning the price of a concrete asset over its effective life in steady yearly increments.

Initial Investments

Money utilized to start a business venture, purchase significant assets, or make investments to generate future income and profit.

Income Taxes

Taxes levied by the government on income generated by businesses and individuals within its jurisdiction.