IanMH

28.02.2020 • 

Business

On July 1, 2014, an interest payment date, $90,000 of Parks Co. bonds were converted into 1,800 shares of Parks Co. common stock each having a par value of $45 and a market value of $54. There is $3,600 unamortized discount on the bonds. Using the book value method, Parks would record...

a. a $10,800 increase in paid-in capital in excess of par.
b. a $7,200 increase in paid-in capital in excess of par.
c. no change in paid-in capital in excess of par.
d. a $5,400 increase in paid-in capital in excess of par.

Ответ:

patrickfryer240

21.04.2020

Business

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17 million

Explanation:

The computation of the outstanding common shares is shown below:

= Number of common shares outstanding - treasury common stock

where,

Number of common shares outstanding = Total value of the common shares ÷ par value of the share

=  $105 million ÷ $5

= 21 million

And, the  treasury common stock is 4 million

Now put these values to the above formula  

So, the value would equal to

= 21 million - 4 million

= 17 million

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