fpsb
Jan 24, 2009, 06:20 PM
What is the formula for computing total legal capital?
A Corporation's stockholders' equity at December 31 consists of the following:
Preferred stock, 8%, $50 par value, call price $55 per share 100,000 shares authorized, 15,000 shares issued and outstanding ............ $ 750,000
Common stock, $4 par value 600,000 shares authorized 500,000 shares issued and 484,000 outstanding .......$ 2,000,000
Additional paid-in-capital in excess of par-Common..........$1,000,000
Retained earnings ...................... $ 500,000
Treasury Stock.(16,000shares)...........$.200,000
Compute the total legal capital:
A. $3,000,000.
B. $3,500,000.
C. $3,750,000.
D. $2,750,000.
A Corporation's stockholders' equity at December 31 consists of the following:
Preferred stock, 8%, $50 par value, call price $55 per share 100,000 shares authorized, 15,000 shares issued and outstanding ............ $ 750,000
Common stock, $4 par value 600,000 shares authorized 500,000 shares issued and 484,000 outstanding .......$ 2,000,000
Additional paid-in-capital in excess of par-Common..........$1,000,000
Retained earnings ...................... $ 500,000
Treasury Stock.(16,000shares)...........$.200,000
Compute the total legal capital:
A. $3,000,000.
B. $3,500,000.
C. $3,750,000.
D. $2,750,000.