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    Bio-Tech Company- value additional paid-in-capital? equity?

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    The equity accounts of Bio-Tech Company is as follows:

    Common Shares ($1.00 per value) - $10,000.000
    Additional paid-in-capital $50,000.000
    Retained earnings $125,000.000
    Treasury shares at cost $1,000.000

    Net common equity 186,000.000

    Suppose the firm sells 2,000,000 new (additional) shares at a price of $19 per share. What is the new value of Common Shares account? What is the new value of the additional paid-in-capital account? what is the new value of the net common equity?

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    Solution Preview

    See attached for correct formatting.

    Amount Change New Amount
    Common stock, par account $10,000 $2,000,000 $2,010,000
    Additional paid in capital in excess of par ...

    Solution Summary

    Instructional notes and computations are shown for your study.