Trent Corporation was organized on January 1, 2008, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. During 2008, the corporation had the following capital transactions:
Trent used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2008?

Question

Trent Corporation was organized on January 1, 2008, with an authorization of 1,200,000 shares of common stock with a par value of $6 per share. During 2008, the corporation had the following capital transactions:
 Trent used the cost method to record the purchase and reissuance of the treasury shares. What is the total amount of additional paid-in capital as of December 31, 2008?

Quizplus · Accepted Answer

(675,000 × $4) + (90,000 × $7) = $3,330,000

Trent Corporation Was Organized on January 1, 2008, with an Authorization