Question

A corporation has the following account balances: Common Stock, $1 par value, $80,000; Paid-in Capital in Excess of Par Value, $2,700,000. Based on this information, thea. legal capital is $2,780,000.b. number of shares issued is 80,000.c. number of shares outstanding is 2,780,000.d. average price per share issued is $3.48.

Answer 1

b. number of shares issued is 80,000

Step-by-step explanation:

In the question, the common stock par value and the total amount is given. Moreover, paid-in capital is also given.

So, if we compute it, then it gives the number of shares issued because it contains a formula which is shown below:

Number of shares issued = (Common stock ÷ Par value)

= ($80,000 ÷ $1)

= 80,000 shares

So, paid-in capital is not relevant in the computation part, and therefore, the other options are wrong except b. option.