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12. On July 15, Reagan, Inc. was incorporated and subsequently entered into asubscription contract to sell 10,000 shares of $10 par common stock at a price of $22/share. The contract requires a down payment of 10%, with the remaining balance to be paid on October 1. The stock will be issued to each subscriber upon full payment. Assume that no other transactions affected common stock during the year. A total of 9,000 shares were paid for under the subscription agreement, and the remaining 1,000 shares were sold to the market at $9/share on October 2. What is the balance in the Common Stock account as of December 31? A. $90,000 B. $99,000 C. $100,000 D. $193,000 E. $207,000 13. JFK Corporation has 10 executives to whom it grants compensatory stock options on January 1, 2007. At that time, it grants each executive the right to purchase 1,000 shares of its $1 par value common stock at $12/share after a 4-year service period. UOG Courses-Examination The value of each option is estimated to be $2.45 on the grant date. Based on its average employee turnover rate each year, JFK expects that a total of 1 executive will NOT vest in the plan. If JFK does not change its assumptions, how much compensation expense will be recognized during 2009? A. $5,513 B. $16,539 C. $22,050 D. $30,000 E. $90,000 14. On January 1, 2008, Washington, Inc. issues 900 shares of $100 par convertible preferred stock for $134/share. Each share of convertible preferred stock can be converted into J. shares of $10 par value common stock. If preferred shareholders convert 200 shares of preferred stock into common stock, how much will Washington, Inc. record in the Common Stock account? A. $0 B. $2,000 C. $6,000 D. $20,000 E. $26,800 15. 0n June 15, 2008, Jefferson Adams, Inc. had 15,000 shares of$5 par value common stock issued and outstanding. These shares of common stock had originally been issued for $12/share. The company had never repurchased or reissued any of the issued an