a-company-issues-80000-shares-of-025-par-value-common-stock-for-consulting-servi

Question

A company issues 80,000 shares of $0.25 par value common stock for consulting services valued at $50,000. How should the APIC be calculated?

Accepted Answer

Subtract the par value from the fair market value of services.

Answer

Divide the fair market value by the par value.

Answer

Multiply the par value by the number of shares issued.

Answer

Add the par value to the fair market value of services.

A company issues 80,000 shares of \$0.25 par value common stock for consulting services valued at \$50,000. How should the APIC be calculated?