Berry Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2014, the first year of the corporation's existence:Sold 10,000 shares of common stock for $13.50 per share.Issued 10,000 shares of common stock in exchange for a patent valued at $150,000.At the end of the Berry's first year, total paid-in capital amounted to

Question

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The total paid-in capital is calculated by adding the cash received from the sale of 10,000 shares at $13.50 per share ($135,000) and the value of the patent for which 10,000 shares were issued ($150,000). This gives a total of $285,000.

Berry Corporation Has 50,000 Shares of $10 Par Common Stock