Question

In January 2, Year 1, Torres Corporation issued 29,000 shares of $20 par value common stock for $30 per share. What is the total amount of capital raised from this stock issuance?

a. $580,000
b. $870,000
c. $1,450,000
d. $870,000

Answer 1

The total amount of capital raised from the stock issuance is $870,000.

Step-by-step explanation:

To determine the total amount of capital raised from the stock issuance, we need to multiply the number of shares by the issue price per share. In this case, Torres Corporation issued 29,000 shares of common stock for $30 per share. So, the total amount of capital raised is $29,000 × $30 = $870,000. Therefore, the correct answer is d. $870,000.