On January 1, 2014, Stamford issues 10,000 additional shares of common stock for $25 per share. Neill

Question:

On January 1, 2014, Stamford issues 10,000 additional shares of for $25 per share. Neill acquires 8,000 of these shares. How will this transaction affect the parent company’s Additional Paid-In Capital account?
a. Has no effect on it.
b. Increases it by $20,500.
c. Increases it by $36,400.
d. Increases it by $82,300.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...