r 18 Homework Assignment 6 Saved Agee Storage issued 41 million shares of its $1

Question

r 18 Homework Assignment 6 Saved Agee Storage issued 41 million shares of its $1 par common stock at $16 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $14 per share. Assuming that Agee retires shares it reacquires (restores their status to that of authorized but unissued shares), by what amount will Agee's total paid-in capital decline if it now reacquires 1 million shares at $20 per share? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Total paid-in capital will decline by million Reference links Acc are Prev of 9 Next

Explanation / Answer

Solution :- Calculation of decline in the total paid-in capital :-

= 1 Million * (16 - 14) + 1 Million * (16 - 1) + 1 Million * 1

= 1 Million * 2 + 1 Million * 15 + 1 Million * 1

= 2 Million + 15 Million + 1 Million

= $ 18 Million.

Conclusion :- Decline in the total paid-in capital value = $ 18 Million.

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.