Textbook Problem

Amlin Corporation was incorporated on January 1, 2019, with the following authorized capitalization:

• 20,000 shares of common stock, no-par value, stated value $40 per share
• 5,000 shares of 5% cumulative preferred stock, par value $ 10 per share

During 2019, Amlin issued 12,000 shares of common stock for a total of $600,000 and 3,000 shares of preferred stock at $16 per share. In addition, on December 21, 2019, subscriptions for 1,000 shares of preferred stock were taken at a purchase price of $17. These subscribed shares were paid for on March 4, 2020. What should Amlin report as total contributed capital on its December 31, 2019, balance sheet issued on February 1,2020?

1. a. $520,000
2. b. $648,000
3. c. $665,000
4. d. $850,000