The Following Information Is Provided for Spring Company If Total Contributed Capital Is $406, 000, What Is the Retained

The following information is provided for Spring Company: $\begin{array}{ll}\text { Retained earnings } & \$ 35,000 \\\text { Preferred stock, } 5 \%, \$ 50 \text { par } & 100,000 \\\text { Organization expense } & 2,500 \\\text { Premium on common stock } & ? \\\text { Additional paid-in capital from recall of preferred stock } & 1,000 \\\text { Premium on bonds payable } & 3,000 \\\text { Common stock, } \$ 10 \text { par } & 300,000\end{array}$
If total contributed capital is $406, 000, what is the amount of premium on common stock for Spring Company?

A) $2, 500
B) $3, 500
C) $5, 000
D) $6, 000
E) none of these

Correct Answer:

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