Question

A corporation was organized in January 2018 with authorized capital of $10 par value common stock. On February 1, 2018, shares were issued at par for cash. On March 1, 2018, the corporation's attorney accepted 7,000 shares of common stock in settlement for legal services with a fair value of $90,000. Additional paid-in capital would increase on

February 1, 2018 March 1, 2018
1. Yes and Yes
2. No and No
3. Yes and No
4. No and Yes

Answer 1

4. No and Yes

Step-by-step explanation:

On march 1, 2018 the paid in capital will increase by $20000 ($90000 - 7000×$10 )