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 contributed capital increase during the recent year of operation?
A)$15,000
B)$73,000
C)$58,000
D)$75,000

Question

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 contributed capital increase during the recent year of operation?
A)$15,000
B)$73,000
C)$58,000
D)$75,000

Quizplus · Accepted Answer

Contributed capital increase ($73,000) = Common stock cash issue ($50,000) + Common stock dividend ($23,000)

Wendell Company Provided the Following Pertaining to Its Recent Year