Crain Company Issued 2,000 Shares of Its $5 Par Value

question 55

Multiple Choice

Crain Company issued 2,000 shares of its $5 par value common stock in payment of its attorney's bill of $30,000. The bill was for services performed in helping the company incorporate. Crain should record this transaction by debiting

• A) Legal Expense for $10,000.
• B) Legal Expense for $30,000.
• C) Organization Expense for $10,000.
• D) Organization Expense for $30,000.

---

Definitions:

Decision-making Experiment

An experimental setup designed to understand how individuals make choices under various conditions.

Experimental Method

A scientific procedure undertaken to discover information or to test a hypothesis by varying conditions and observing the outcomes.

Ethical Reasons

Considerations based on moral principles that influence decisions and actions, often involving the distinction between right and wrong.

Practical Reasons

Reasons or considerations based on actual practice or use; focusing on real-life applications and consequences.