Reference no: EM132761687

Wendell Company provided the following pertaining to its accounting year that ended December 31, 2019:

• Common stock with a $10,000 par value was sold for $45,000 cash
• Cash dividends totaling $21,500 were declared, of which $16,500 were paid
• Net income was $65,000
• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $24,500 market value
• Treasury stock repurchased in a prior year for $10,500 was resold for $8,500 and in the journal entry to record the sale, Additional paid-in capital was debited for the amount of the difference between the repurchase price and the resale price

Problem 1: What is the amount of net increase in Wendell's additional paid-in capital account during the year 2019?

Multiple Choice

Option 1: $52,500.
Option 2: $65,000.
Option 3: $25,500.
Option 4: $54,500.