Answer:
The correct answer is $177,955.
Explanation:
According to the scenario, the computation of the given data are as follows:
Capital in excess of par account = $74,500
Common stock = $85,000
Retained earning = $141,500
So, we can calculate the balance in the capital in excess of par account be after the dividend by using following formula:
Capital after Dividend = Balance sheet amount of Capital + ( Issued additional share × Capital in excess of par per share )
Where,
Issued additional share = 11% × $85,500 = 9,405
And Capital in excess of par per share = $12 - $1 = $11
By putting the value, we get
Capital after dividend = $74,500 + ( 9,405 × $11)
= $74,500 + $103,455
= $177,955
