The balance in Common Shares on January 1, 2013, and December 31, 2013, is respectively $145,000 and $172,500. During the year, $57,000 repurchase of shares was recorded. During the year, shares were issued. The proceeds from the issue of shares amounted to:

Question

Quizplus · Accepted Answer

The increase in common shares from January 1 to December 31 is ($172,500 - $145,000) = $27,500. Since $57,000 of shares were repurchased during the year, there must have also been an issuance of shares that offset this repurchase and led to a net increase of $27,500.

The proceeds from the issuance of shares would therefore equal the sum of the repurchase and the net increase in shares, which is $57,000 - $27,500 = $29,500.

Therefore, the correct option is C.

The Balance in Common Shares on January 1, 2013, and December