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Crane Company Financial Information December 2007 December 2008 Net income $2,00

ID: 2666915 • Letter: C

Question

Crane Company Financial Information

December 2007 December 2008
Net income $2,000 $5,000
Accounts receivable $750 $750
Accumulated depreciation $1,000 $1,500
Common stock $4,500 $5,000
Paid-in capital $7,500 $8,000
Retained earnings $1,500 $2,500
Accounts payable $750 $750

Based on the above information, assuming that no common stock was repurchased during the year, the firm issued how much new common stock during 2008?

Please give all of your work / explanation on how to arrive at the answer.

A. $1,500
B. $1,000
C. $2,000
D. $ 500
Thanks

Explanation / Answer

c. $2,000