Answer:
C) $147,400
Explanation:
Year 2 Year 1
$512,000 $460,800 Common Stock
$960,000 $863,800 Paid-in capital in excess of par
$700,000 $592,800 Retained earnings
When the company issue new shares the values are recorded in the Common Stock accounts and in the Paid-in Capital in excess of par, the increase on this accounts indicates the value of sales:
$512,000 $460,800 = $51,200 Common Stock
$960,000 $863,800 = $96,200 Paid-in capital in excess of par
$51,200 + $96,200 = $147,400
