Answer: Option (a) is correct.
Explanation:
The journal entries are as follows:
On Jan 1,
Cash A/c (8 million × $15) Dr. 120
To Common stock A/c (8 million × $1) 8
To additional paid-in capital‒ excess of par 112
On June 03,
Common stock A/c (2 million × $1) Dr. 2
Additional paid-in capital‒ excess of par Dr. 28
Retained Earnings A/c (2 million × $3) Dr. 6
To Cash A/c (2 million × $18) 36
On Dec 28,
Cash A/c (2 million × $20) Dr. 40
To Common stock A/c (2 million × $1) 2
To additional paid-in capital‒ excess of par 38
Therefore,
The amount should Alpaca report as additional paid-in capital‒ excess of par, in its December 31, 2018, balance sheet:
= 112 - 28 + 38
= $122 million
