Sandoz Corporation was organized on January 1, 2018, with authorized capital of 500,000 shares of $10 par value common stock. During 2018, Sandoz issued 30,000 shares at $12 per share, purchased 3,000 shares of treasury stock at $13 per share, and sold 3,000 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2018?

Question

Quizplus · Accepted Answer

The additional paid-in capital is the difference between the amount received from issuing stock and the par value of the stock issued. 
30,000 shares were issued at $12 per share, which means there was a total of $360,000 ($12 x 30,000) received from issuing stock. 
Par value of 30,000 shares at $10 per share is $300,000 ($10 x 30,000). 
Therefore, the additional paid-in capital is $60,000 ($360,000 - $300,000). 
In addition, the purchase and sale of treasury stock do not affect the additional paid-in capital. Therefore, the correct answer is option D.

Sandoz Corporation Was Organized on January 1, 2018, with Authorized