Peace Company's capital stock is currently trading for $22 per share.The following accounts appear on the balance sheet: The only transaction affecting the accounts was the issue of the company's common stock.What was the original selling price of the common stock?

Question

Peace Company's capital stock is currently trading for $22 per share.The following accounts appear on the balance sheet:  The only transaction affecting the accounts was the issue of the company's common stock.What was the original selling price of the common stock?

Quizplus · Accepted Answer

Since the only transaction on the balance sheet was the issuance of common stock, we can assume that the current stock price of $22 per share is equal to the original selling price of the stock. Therefore, the answer is C, $17.00 per share, as this is the only option that is lower than the current stock price.

Peace Company's Capital Stock Is Currently Trading for $22 Per