A company issues 40,000 shares of \$1 par value common stock for marketing services valued at \$70,000. How should the APIC be calculated?

• A. Add the par value to the fair market value of services.
• B. Multiply the par value by the number of shares issued.
• C. Subtract the par value from the fair market value of services.
• D. Divide the fair market value by the par value.

Answer: (C)