Question

Racer Corporation's December 31, 2017 balance sheet showed the following:

6% preferred stock, $20 par value, cumulative,
40,000 shares authorized; 25,000 shares issued	$     500,000
Common stock, $10 par value, 4,000,000 shares authorized;      2,600,000 shares issued, 2,560,000 shares outstanding	26,000,000
Paid-in capital in excess of par value – preferred stock	80,000
Paid-in capital in excess of par value – common stock	37,000,000
Retained earnings	12,200,000
Treasury stock (30,000 shares)	840,000

Racer's total paid-in capital was

Question 9 options:

	$63,580,000
	$62,740,000
	$36,080,000
	$64,420,000

Answer 1

	Racer Corporation's
	Shareholder's Equity section of the balance sheet
	at 31.12.2017
	Paid-in Capital:
	Common stock, $10 par value, 4,000,000 shares authorized; 2,600,000 shares issued, 2,560,000 shares outstanding	$ 2,60,00,000
	Paid-in Capital in excess of Par of common stock	$ 3,70,00,000
	Preferred 6% Stock ($20 par value, 40000 Shares authorised and 25000 Issued)	$        5,00,000
	Paid-in Capital in excess of Par of Preferred stock	$           80,000
	Total Paid-in Capital	$ 6,35,80,000
	Retained earnings	$ 1,22,00,000
	Subtotal	$ 7,57,80,000
	Treasury Stock, at Cost	$      (8,40,000)
	Total Shareholder's Equity	$ 7,49,40,000

Racer's total paid-in capital was

$63,580,000