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Financial Accounting

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Shareholders' Equity: Contributed Capital and Paid in Capital

FINACT-1XNM5L

Smart Company provides the following information relative to the shareholders’ equity section of the balance sheet:

Retained Earnings \$95,000
Treasury Stock (\$7,000)
Common Stock, \$1 par value \$200,000
Preferred Stock, no par value \$100,000
TOTAL CONTRIBUTED CAPITAL \$600,000


Based on the information provided above, how much additional paid-in-capital relative to common stock will be reported in the shareholders’ equity section of the balance sheet?

A

\$600,000

B

\$300,000

C

\$688,000

D

\$593,000