II. Exercise Determine the correct answer. (30 points) The following items were shown on the balance sheet of Westwind Corporation on December 31, 2020 Paid-in capital Capital stock Common stock, $5 par value, 400,000 shares authorized shares issued and $1,850,000 outstanding Additional paid-in capital In excess of par Total paid-in capital 2,015,000 Retained earnings Total paid-in capital and retained 2,765,000 earnings Less: Treasury stock (18,000 shares) 180,000 Total stockholders' equity $2,585,000 Complete the following statements and show your computations (a) The number of shares of common stock issued was (b)The number of shares of common stock outstanding was (c) (d) (e) The sales price of the common stock when issued was The cost per share of the treasury stock was The average issue price of the common stock was II.Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. (25 points) A Advantage D Disadvantage N Not Applicable Characteristics 1. Separate legal entity 2.Taxable entity resulting in additional taxes 3.Continuous life 4. Unlimited liability of owners 5. Government regulation 6. Separation of ownership and management 7. Ability to acquire capital 8. Ease of transfer of ownership II. Exercise Determine the correct answer. (30 points) The following items were shown on the balance sheet of Westwind Corporation on December 31, 2020 Paid-in capital Capital stock Common stock, $5 par value, 400,000 shares authorized shares issued and $1,850,000 outstanding Additional paid-in capital In excess of par Total paid-in capital 2,015,000 Retained earnings Total paid-in capital and retained 2,765,000 earnings Less: Treasury stock (18,000 shares) 180,000 Total stockholders' equity $2,585,000 Complete the following statements and show your computations (a) The number of shares of common stock issued was (b)The number of shares of common stock outstanding was (c) (d) (e) The sales price of the common stock when issued was The cost per share of the treasury stock was The average issue price of the common stock was II.Identify (by letter) each of the following characteristics as being an advantage, a disadvantage, or not applicable to the corporate form of business organization. (25 points) A Advantage D Disadvantage N Not Applicable Characteristics 1. Separate legal entity 2.Taxable entity resulting in additional taxes 3.Continuous life 4. Unlimited liability of owners 5. Government regulation 6. Separation of ownership and management 7. Ability to acquire capital 8. Ease of transfer of ownership