A firm has $1,500,000 in its common stock account and $1,000,000 in its paid-in capital account. The firm issued 100,000 shares of common stock. What was the original issue price if only one stock issue has ever been sold?

Question

Quizplus · Accepted Answer

The original issue price per share is calculated by dividing the total amount raised from the stock issue ($1,500,000 + $1,000,000 = $2,500,000) by the number of shares issued (100,000), which equals $25 per share.

A Firm Has $1,500,000 in Its Common Stock Account and $1,000,000