Question

A corporation was organized in January 2021 with authorized capital of $10 par value common stock. On February 1, 2021, shares were issued at par for cash. On March 1, 2021, the corporation's attorney accepted 6400 shares of common stock in settlement for legal services with a fair value of $82000. Additional paid-in capital would increase on February 1, 2021 March 1, 2021 O Yes No No No ооо Yes W Yes No Yes

Answer 1

There is no increase in additional paid-in capital on February 1, 2021 as the shares were issued at par. On March 1, 2021, 6400 shares were accepted for $82000. The par value of these shares is $64000 6400 x $10). Thus, the additional paid-in capital would increase by $18000 ($82000 - $64000). Thus, the correct option is February 1, 2021 March 1, 2021 No Yes