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Michael's Motor Scooters Has 1,000 Shares Outstanding Each with a Par

Question 36

Multiple Choice

Michael's Motor Scooters has 1,000 shares outstanding each with a par value of $0.05. If they are sold to shareholders at $5 each,what would the capital surplus be?


A) $4,400
B) $4,500
C) $4,750
D) $4,950
E) $5,000

Correct Answer:

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