Question 17
1.
Spartan Corporation was organized on January 1, 2011, with an authorization of 1,000,000 shares of $5 par value common stock. During 2011, Spartan had the following common stock transactions:
Jan. 4: Issued 100,000 shares @ $6 per share.
Apr. 8: Issued 200,000 shares @ $7 per share.
June 9: Issued 60,000 shares @ $10 per share.
July 29: Purchased 40,000 shares (treasury) @ $9 per share.
Dec. 31: Sold 40,000 shares held in treasury @ $12 per share.
Spartan had no other transactions affecting paid in capital. At December 31, 2011, what is the total amount of paid in capital?
Answer
A. $2,720,000
B. $1,800,000
C. $ 920,000
D. $ 800,000
E. None of the above