STOCK DIVIDENDS AND STOCK SPLITS. The balance sheet of Castle Cor- poration includes the following equity section:

REQUIRED:
1. Assume that Castle issued 30,000 shares for cash at the inception of the corporation and that no new shares have been issued since. How much cash was received for the shares issued at inception?
2. Assume that Castle issued 15,000 shares for cash at the inception of the corporation and subsequently declared a two-for-one stock split. How much cash was received for the shares issued at inception?
3. Assume that Castle issued 25,000 shares for cash at the inception of the corporation and that the remaining 5,000 shares issued are the result of stock dividends that capitalized retained earnings of $21,600. How much cash was received for the shares issued at inception?

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Capital stock: Common stock, $2 par, 50,000 shares authorized, 30,000 shares issued and outstanding Paid-in capital in excess of par Total capital stock Retained earnings Total equity $ 60,000 71,800 131,800 73,000 $204,800