On June 1, Mason Company issued 8,000 shares of its $10 par common stock to Dixon for a tract of land. The stock had a fair market value of $18 per share on this date. On Dixon's last property tax bill, the land was assessed at $96,000. Mason should record an increase in Additional Paid-In Capital of

Question

Quizplus · Accepted Answer

The total value of the stock issued is equal to 8,000 shares x $18 per share = $144,000. The value of the land is $96,000. Therefore, the excess value of the stock over the value of the land is $144,000 - $96,000 = $48,000. This excess value is recorded in Additional Paid-In Capital, so the correct answer is B) $64,000.

On June 1, Mason Company Issued 8,000 Shares of Its