Reference no: EM132697482

Company began business on January 1 and immediately issued 500,000 shares of its $5 par value common stock for $12,500,000. At the end of the year it paid $200,000 in cash dividends. In midyear, the firm bought back some of its own shares.

The company reports the following additional information at December 31:

Net income                                     $2,000,000
Retained earnings beginning of year           $0
Common shares authorized                 5,000,000
Shares outstanding at year end            450,000

Problem 1: How much is the Additional Paid-in Capital account at the end of the year?