Spartan Corporation was organized on January 1, 2011, with an authorization of 1

Question

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

Explanation / Answer

paid in capital 100000*6=600000 200000*7=1400000 60000*10=600000 less:40000*9=(360000) 40000*12=480000 net paid up capital=$2720000

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