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Financial Accounting

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Drake, Average Issue Price Preferred Stock

FINACT-4NFNY3

Drake Inc. has the following balances at the end of Year 5:

Stockholder's Equity Section:
Preferred stock, \$100 par value, 5,000,000 shares authorized
— ? — shares issued, cumulative, nonparticipating, callable at par \$50,000
Paid in capital in excess of par, preferred stock \$75,000
Common stock, \$12 par value, 6,000,000 shares authored, — ? — shares issued \$600,000
Paid in capital, in excess of par, common stock \$25,000
Retained earnings \$825,000

What was the average issue price for the preferred stock?