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on The following information applies to the questions displayed below) Amelia Co

ID: 2609198 • Letter: O

Question

on The following information applies to the questions displayed below) Amelia Corporation has the following information in its financial statement Preferred Stock 68, $100 par, cumulative, 10, 000 shares authorized Common Stock, $2 par, 400, 000 shares authorized, 320,000 issued Paid-in-Capital- Preferred Paid-in Capital Common Retained earnings 540,000 640,000 760, 000 2, 560, 000 2, 373, 400 How many shares of preferred stock are outstanding? Select one O a. 32,400 shares O b. 5,400 shares O c. 10,000 shares O d. The number of shares cannot be determined without more information. Next page

Explanation / Answer

ANswer is 5400 shares

Prefference sahres is issued at premium hence paid in capital is less than paid up capital

$540,000/$100 par = 5,400 shares