Wendell Company provided the following pertaining to its recent year of operation: • Common stock with a $10,000 par value was sold for $50,000 cash.
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid.
• Net income was $70,000.
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value.
• Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's capital in excess of par increase during the recent year of operation?
A) $60,000.
B) $58,000.
C)$56,000.
D)$24,000.

Question

Quizplus · Accepted Answer

The Answer of Wendell Company provided the following pertaining to its recent year of operation: • Common stock with a $10,000 par value was sold for $50,000 cash.
• Cash dividends totaling $20,000 were declared, of which $15,000 were paid.
• Net income was $70,000.
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value.
• Treasury stock costing $9,000 was sold for $7,000.
How much did Wendell's capital in excess of par increase during the recent year of operation?
A) $60,000.
B) $58,000.
C)$56,000.
D)$24,000.

Wendell Company Provided the Following Pertaining to Its Recent Year