Bagwell's net income for the year ended December 31, Year 2 was $185,000. Information from Bagwell's comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2. $\begin{array}{|l|l|l|}
\hline \text { At December } 31 &{\text { Y ear 2 }} & \text { Y ear 1 } \
\hline \text { Common Stock, } \$ 5 \text { par value } & \$ 500,000 & \$ 450,000 \
\hline \text { Paid-in capital in excess of par } & 948,000 & 853,000 \
\hline \text { Retained earnings } & 688,000 & 582,000 \
\hline
\end{array}$
A)$145,000.
B)$50,000.
C)$95,000.
D)$106,000.
E)$185,000.

Question

Quizplus · Accepted Answer

The increase in common stock and paid-in capital in excess of par is $50,000 ($500,000 - $450,000 and $948,000 - $853,000).

Bagwell's Net Income for the Year Ended December 31, Year