Quality Cleaning Corp.issued 50 no-par-value common shares for land with a market value of $4,000.Dillon had originally issued common shares at $100 two years ago,but there is currently no market value available for their shares.The amount of contributed capital arising from this transaction is
A)$100
B)$600
C)$1,000
D)$4,000
E)$6,000

Question

Quizplus · Accepted Answer

The contributed capital arising from this transaction is equal to the market value of the land received in exchange for the no-par-value common shares, which is $4,000. The original issuance price of the common shares is not relevant in this transaction.