East Co. issued 1,000 shares of its $5 par common stock to
Howe as compensation for 1,000 hours of legal services performed.
Howe usually bills $160 per hour for legal services. On
the date of issuance, the stock was trading on a public exchange at
$140 per share. By what amount should the additional paid-in
capital account increase as a result of this transaction?

$135,000
$140,000
$155,000
$160,000

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