Question

Agee Storage issued 35 million shares of its $1 per common stock at $16 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $14 per share. If Agee now retires 1 million shares at $19 per share. By what amount will Agee's total paid-in capital decline?

Answer 1

Answer:

$18 000 000

Step-by-step explanation:

The first step is to calculate the par value of shares

$1*35000000=35000000

=$35000000

Issued shares of the the par

amount over par

=$16-$1=$15

Then paid capital in excess of par

$15*1000000

=$525000000

The first reacquire remember there were issued at $16

so for first reacquire

$16-$14=$2

$2*35000000=$70 000000

so Agee total paid-in capital will decline by

$15+$2+$1=$18 per share

Answer 2

Answer:

$18 Millions

Step-by-step explanation:

Decline in total paid in capital=Total value of reacquisition - Decline in retained earnings

$19-$1=$18 millions