The corporate charter of Llama Co. authorized the issuance of 24 million, $1 par common shares. During 2021, its first year of operations, Llama had the following transactions: January 1 sold 4 million shares at $29 per share June 3 purchased 16 million shares of treasury stock at $32 per share December 28 sold the 1 million shares of treasury stock at $34 per share What amount should Llama report as additional paid-in capital in its December 31, 2021, balance sheet

Question

Athena Hill

Business

15 October, 15:54

The corporate charter of Llama Co. authorized the issuance of 24 million, $1 par common shares. During 2021, its first year of operations, Llama had the following transactions: January 1 sold 4 million shares at $29 per share June 3 purchased 16 million shares of treasury stock at $32 per share December 28 sold the 1 million shares of treasury stock at $34 per share What amount should Llama report as additional paid-in capital in its December 31, 2021, balance sheet

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Aurora · Answer 1

($366,000,000)

Explanation:

January 1 paid in capital in excess of par (29-1) * 4,000,000 $112,000,000

June 3 Treasury Stock purchased ($32) * 16,000,000 ($512,000,000)

December 28 Treasury stock sold (1000,000*34) $34,000,000

Total ($366,000,000)