1.3.S. Landon Corporation issued 2,000 shares of $5 par value common stock and 400 shares of $40 par value preferred stock for a lump sum of $70,000 cash. What is the credit to Additional Paid- in- Capital-Common when the market value of the common shares is $30 each and market value of the preferred stock is $60 each? (Round to nearest dollar)

Select one:

a. $40,000

b. $44,000

c. $18,000

d. $60,000

e. $50,000

2.The Leverenz Company issued 10,000 shares of $10 par common stock. Sale price was $25 per share. Leverenz then: 1. Purchased 2,000 shares at $35 per share. 2. Resold 800 of the shares at $38 per share. 3. Resold 500 of the shares at $30 per share. No other stock transactions occurred. Retained Earnings was $20,000 prior to these transactions. What is the combined effect of Transactions #1 through #3 on Retained Earnings and Total Stockholders Equity, respectively?

Select one:

a. $0, $0

b. $0, $24,500 decrease

c. $100 decrease, $24,600 decrease

d. $100 increase, $45,400 increase

e. $100 increase, $24,500 decrease