Cary Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during

Question:

Cary Corporation has 50,000 shares of $10 par common stock authorized. The following transactions took place during 2019, the first year of the corporation’s existence:
• Sold 5,000 shares of common stock for $18 per share.
• Issued 5,000 shares of common stock in exchange for a patent valued at $100,000.
At the end of Cary’s first year, total contributed capital amounted to:
a. $40,000
b. $90,000
c. $100,000
d. $190,000

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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