On January 1,2015,Edward Corporation had 10,000 shares of $6 par value common stock and 10,000 shares of 8%,$100 par value convertible p

Question

Quizplus · Accepted Answer

The correct answer is A because the total par value of the common stock is $60,000 (10,000 shares x $6 par value) and the total par value of the convertible preferred stock is $1,000,000 (10,000 shares x $100 par value). The total par value of all outstanding shares is therefore $1,060,000 ($60,000 + $1,000,000).

On January 1,2015,Edward Corporation Had 10,000 Shares of $6 Par