loader  Loading... Please wait...

Question(s) / Instruction(s):

On January 1, 2002, Sony Corporation issued 80,000 shares of its total 200,000 authorized shares of $3 par value common stock for $10 per share. On December 31, 2002, Sony Corporations common stock is trading at $15 per share.

Assuming Sony Corporation did not issue any more common stock in 2002, how does the increase in value of its outstanding stock affect Sony?

A.            Sony should recognize additional net income for 2002 of $5 per share, or $400,000.

B.            Paid-in capital at December 31, 2002, is $1,200,000 (i.e. 80,000 shares times $15 per share).

C.            This increase in market value of outstanding stock is not recorded in the financial statements of Sony Corporation.

D.            Each shareholder must pay an additional $5 per share to Sony.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$1.79

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494