on The following information applies to the questions displa

on The following information applies to the questions displayed below) Amelia Corporation has the following information in its financial statement Preferred Stock 68, $100 par, cumulative, 10, 000 shares authorized Common Stock, $2 par, 400, 000 shares authorized, 320,000 issued Paid-in-Capital- Preferred Paid-in Capital Common Retained earnings 540,000 640,000 760, 000 2, 560, 000 2, 373, 400 How many shares of preferred stock are outstanding? Select one O a. 32,400 shares O b. 5,400 shares O c. 10,000 shares O d. The number of shares cannot be determined without more information. Next page

Solution

ANswer is 5400 shares

Prefference sahres is issued at premium hence paid in capital is less than paid up capital

$540,000/$100 par = 5,400 shares