Answer:
Additional paid-in capital is $904,200
Explanation:
Number of shares, issued and outstanding = 93,000 shares
Acquired 2,460 shares of its stock for $75,000.
Sold 2,000 treasury shares at $35 per share.
Sold the remaining 460 treasury shares at $20 per share.
i) Acquired 2,460 shares of its stock for $75,000.
= Treasury Stock Dr $75,000
ii) Sold 2,000 treasury shares at $35 per share.
Treasury Stock (2,000 × $35) = Dr $70,000
iii) Sold the remaining treasury shares at $20 per share.
Treasury Stock (460 × $20) = Dr $9,200
Total Treasury Stock = $75,000 - $70,000 - $9,200
= ($4,200)
Paid in Cap-tresury stock= 10,000-5000=5000
Additional Paid in capital = Paid in Capital - treasury stock
= 900,000 + 4,200 = $904,200
