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Zanzabum
3 years ago
5

Corporation recently organized. The company issued common stock to an inventor in exchange for a patent with a market value of $

59 comma 000. In​ addition, Aster received cash for 1 comma 000 shares of its $ 15 par preferred stock at par value and 9 comma 500 shares of its​ no-par common stock at $ 20 per share. Without making journal​ entries, determine the total​ paid-in capital created by these transactions. The total paid-in capital created by these transactions amounts to $ .
Business
1 answer:
Serggg [28]3 years ago
3 0

Answer:

$264,000 increase in paid in capital

Explanation:

The company issued common stock to an inventor in exchange for a patent with a market value of $59,000.

  • All we are told is that common stock were issued in exchange of a patent, therefore, so the paid in capital increased by $59,000.  

In​ addition, Aster received cash for 1 comma 000 shares of its $ 15 par preferred stock at par value and 9 comma 500 shares of its​ no-par common stock at $ 20 per share.

  • The company increased its paid in capital in two different ways: $15,000 in preferred stocks + $190,000 in non-par common stocks = $205,000

total increase in paid in capital = $59,000 + $205,000 = $264,000

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Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $105,000. Not included in
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<h3>What is taxable income?</h3>
  • The base on which an income tax system levies tax is referred to as taxable income.
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Therefore, the corporation's current earnings and profits for year one would be (A) $354,000.

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brainly.com/question/26316390

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Complete question:

Grand River Corporation reported taxable income of $500,000 in year 1 and paid federal income taxes of $170,000. Not included in the computation was a disallowed meal and entertainment expense of $2,000, tax-exempt income of $1,000, and deferred gain on an installment sale of $25,000. The corporation's current earnings and profits for year 1 would be:

A) $354,000.

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D) $331,000.

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