a. Mountain Air's net income for fiscal 2015 is $910,000.
b. The number of new shares issued is 1,120,000.
c. The price per share of the new stock sold during 2015 is $4.20.
d. The original price of the shares was $2.08.
a. The net income is
= $1,500,000 - $800,000 + $210,000
= $910,000
b. The number of New Share issued is
= 1,600,000 - 480,000
= 1,120,000
c. The price of the new stock per share sold is
Par Value 1,120,000
Add: Paid In excess Of par (4,100,000 - 520,000) 3,580,000
Net Proceeds from issuance of shares 4,700,000
Number of New Share Issued 1,120,000
Now
The Average price per share of the new stock sold is
= 4,700,000 ÷ 1,120,000
= $4.20
d. The original price of the share is
The original issuance price is
= (Paid-in-capital account + common stock account) ÷ original shares
= (520,000 + 480,000) ÷ 480,000
= $2.08
Therefore we can conclude that
a. Mountain Air's net income for fiscal 2015 is $910,000.
b. The number of new shares issued is 1,120,000.
c. The price per share of the new stock sold during 2015 is $4.20.
d. The original price of the shares was $2.08.
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