Refer to Lanthier's Heating & Air. What is the maximum amount that can be reported on the balance sheet for common stock and preferred stock, respectively, if all of the stock is issued? Common Stock Preferred Stock

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Quizplus · Accepted Answer

The maximum amount that can be reported on the balance sheet for common stock is $20,000, which is the amount authorized by the company. The maximum amount that can be reported on the balance sheet for preferred stock is $40,000, which is also the amount authorized by the company. Therefore, the best choice is B, since it reflects the maximum amount that can be reported for both types of stock if all of the stock is issued.