SXC reported the following data on its 2014 statement of financial position: If the average price paid for all of the common shares sold and subscribed were $5.00,the total number of sold and subscribed shares was:

Question

SXC reported the following data on its 2014 statement of financial position:  If the average price paid for all of the common shares sold and subscribed were $5.00,the total number of sold and subscribed shares was:

Quizplus · Accepted Answer

To find the total number of sold and subscribed shares, we need to divide the total common shares (500,000) by the common share par value ($10). This gives us the number of common shares outstanding, which is 50,000.

Since the average price paid for all of the common shares sold and subscribed was $5.00, we can use the formula:

Total amount raised from sale of shares = Average price paid per share x Number of shares sold and subscribed

Plugging in the given information, we get:

Total amount raised from sale of shares = $5.00 x Number of shares sold and subscribed

$220,000 = $5.00 x Number of shares sold and subscribed

Number of shares sold and subscribed = $220,000 / $5.00 = 44,000

Therefore, the best choice is C) 44,000.

SXC Reported the Following Data on Its 2014 Statement of Financial