Southern Limited issued 2,000 common shares in payment of its lawyer's bill of $8,000. Southern Limited assured the lawyer that the shares would be worth $10,000 within one year. The bill was for services performed in helping the company incorporate. Southern should record this transaction by debiting
A) Legal Fees Expense for $10,000.
B) Legal Fees Expense for $8,000.
C) Common Shares for $10,000.
D) Common Shares for $8,000.
Correct Answer:
Verified
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