Answer:
$4,085,000
Explanation:
Given that,
Coronado Industries, issued for $103 per share, 95000 shares of $100 par value convertible preferred stock.
1 share of preferred stock = 3 shares of common stock ($20 par value)
Additional paid in capital:
= Preferred stock - Common stock
= [95,000 shares × $103] - [(95,000 shares × 3 shares) × $20]
= $9,785,000 - (285,000 shares × $20)
= $9,785,000 - $5,700,000
= $4,085,000
