Anole Company
Anole Company was incorporated as a new business on January 1, 2015.The company is authorized to issue 20,000 shares of $5 par value common stock and 10,000 shares of 6%, $10 par value, cumulative, participating preferred stock.On January 1, 2015, the company issued 8,000 shares of common stock for $15 per share and 2,000 shares of preferred stock for $30 per share.Net income for the year ended December 31, 2015, was $375,000.
-Refer to the information about Anole Company.
The amount of Anole's total contributed capital at December 31, 2015, is

Question

Quizplus · Accepted Answer

The total contributed capital is the sum of the par value of the common and preferred stock issued.

For common stock: 
8,000 shares × $5 par value = $40,000

For preferred stock: 
2,000 shares × $10 par value = $20,000

Total contributed capital = $40,000 + $20,000 = $60,000

However, the question asks for the amount at December 31, 2015, which does not take into account any changes in contributed capital during the year. Since no additional stock issuances are mentioned in the question, the total contributed capital remains at $60,000.

Therefore, the correct answer is C) $180,000.

Anole Company Anole Company Was Incorporated as a New Business on January