Crown Resources, Inc., an international producer of cardboard packaging, reports the following information in its 1999 financial statements:

Stock issued under stock option and employee savings plans: 1,415,711 shares Resulting changes in shareholders’ equity:

Paid-in capital increase $23,600,000 Treasury stock decrease 7,000,000 Total increase in shareholders’ equity $30,600,000 The market price of Crown’s common stock averaged about $40 per share during 1999.

Required

a. What was the average amount of proceeds per share that Crown received for the stock issued in 1999 under its stock option and employee savings plans?

b. What was the aggregate market value of the shares issued by Crown during 1999 under these plans?

c. Discuss the difference between the aggregate market value and the aggregate proceeds received by Crown for the stock issued in 1999. Is this interpretation consistent with the accounting treatment? Explain.