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At the end of 2017, Dennis Corp. had the following information available regarding its convertible preferred stock:
Convertible Preferred Stock:
$25par, 3,000 shares outstanding $75,000
Additional Paid-in Capital- Preferred stock 175,000
At the start of 2018, all shares of preferred stock were converted into 4,000 shares of $1 par common stock when the was worth $250 per share.

Assuming Dennis uses the book value method, by how much should the "Additional paid-in capital- common Stock " account be increased when the preferred shares are converted?


Sagot :