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15 - 16 Test Bank for Intermediate Accounting, Fourteenth Edition

MULTIPLE CHOICEComputational
Use the following information for questions 71 and 72.
Presented below is information related to Hale Corporation:
Common Stock, $1 par
Paid-in Capital in Excess of ParCommon Stock
Preferred 8 1/2% Stock, $50 par
Paid-in Capital in Excess of ParPreferred Stock
Retained Earnings
Treasury Common Stock (at cost)

$4,800,000
550,000
2,000,000
400,000
1,500,000
150,000

71.

The total stockholders' equity of Hale Corporation is


a. $9,100,000.
b. $9,250,000.
c. $7,600,000.
d. $7,750,000.

72.

The total paid-in capital (cash collected) related to the common stock is
a. $4,800,000.
b. $5,350,000.
c. $5,750,000.
d. $5,200,000.

73.

Manning Company issued 10,000 shares of its $5 par value common stock having a fair
value of $25 per share and 15,000 shares of its $15 par value preferred stock having a fair
value of $20 per share for a lump sum of $520,000. How much of the proceeds would be
allocated to the common stock?
a. $54,167
b. $236,364
c. $270,833
d. $276,250

74.

Norton Company issues 4,000 shares of its $5 par value common stock having a fair
value of $25 per share and 6,000 shares of its $15 par value preferred stock having a fair
value of $20 per share for a lump sum of $204,000. What amount of the proceeds should
be allocated to the preferred stock?
a. $182,750
b. $127,500
c. $111,273
d. $95,625

75.

Berry Corporation has 50,000 shares of $10 par common stock authorized. The following
transactions took place during 2012, the first year of the corporations existence:
Sold 10,000 shares of common stock for $18 per share.
Issued 10,000 shares of common stock in exchange for a patent valued at $200,000.
At the end of the Berrys first year, total paid-in capital amounted to
a. $80,000.
b. $180,000.
c. $200,000.
d. $380,000.