The stockholders’ equity section of Brown Co.’s December 31, 2006 balance sheet consisted of the following:
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Common stock, $30 par, 10,000 shares authorized and outstanding |
$300,000 |
|
Additional paid-in capital |
150,000 |
|
Retained earnings (deficit) |
(210,000) |
On January 2, 2007, Brown put into effect a stockholder-approved quasi reorganization by reducing the par value of the stock to $5 and eliminating the deficit against additional paid-in capital. Immediately after the quasi reorganization, what amount should Brown report as additional paid-in capital?
- $ (60,000)
- $150,000
- $190,000
- $400,000