Answer:
$600 million
Explanation:
On January 1, 2020, the balance of common stock & APIC is derived as follows:
Common stock & APIC = Paid-In Capital + Capital raised from selling 50 million shares at $20 each - Treasury Stock
This gives:
Paid-In Capital = $500 million
Issuance of 50 million shares at $20 each amounts to:
Treasury Stock involves buying back 20 million shares priced at $45 each.
Inserting the numbers leads to:
Common stock & APIC = $500 million + $1000 million - (20 million shares × $45 each)
Therefore, Common stock & APIC = $1500 million - $900 million = $600 million
