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Caradonna Company has 100,000 shares of $5 par common stock issued and outstanding as of January 1, year 8. The shares were originally issued for $22 per share. On February 3, year 8, Caradonna repurchased 5,000 shares at $19 per share for the purposes of retiring them. On April 10, year 8, Caradonna repurchased an additional 2,000 shares at $25 per share. No other transactions involving common stock occurred during the year. What will be the balance in additional paid in capital from retired stock as a result of those transactions?

Respuesta :

Tundexi

Answer:

$9,000

Explanation:

                                                   Common Stock     Add. Paid in Capital

Additional Paid in capital on          $35,000                  $119,000

issued of 7000 Shares                  (7,000*$5)                (7,000*$17)

Total Amount collected in                                              $119,000

additional paid in capital (A)                        

Repurchase 5000 Shares at $19   $25,000                   $70,000

                                                         (5000*5)                  (5,000*14)

Repurchase 2000 Shares at $25  $10,000                    $40,000

                                                         (2000*5)                   (2,000*20)

Total Amount Paid on Additional                                   $110,000

Paid in capital (B)

Balance in Additional paid in Capital (A-B)                   $9,000

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