Answer:
$3,130,000
Explanation:
For computing the total amount invested, first we have to pass the journal entries which are shown below:
Cash A/c Dr $1,700,000 (25,000 shares × $68)
To Common Stock $500,000 (25,000 shares × $20)
To Additional Paid-in Capital in excess of par - Common Stock $1,200,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
Cash A/c Dr $1,430,000 (130,000 shares × $11)
To Preferred Stock $1,040,000 (130,000 shares × $8)
To Additional Paid-in Capital in excess of par - Preferred Stock $390,000
(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)
Now the total amount invested would be
= $500,000 + $1,200,000 + $1,040,000 + $390,000
= $3,130,000
