When a Firm Issues 50,000 Shares with a Par Value

question 55

Multiple Choice

When a firm issues 50,000 shares with a par value of $5 for $22 per share,additional paid-in capital will:

• A) decrease by $250,000.
• B) increase by $250,000.
• C) increase by $850,000.
• D) increase by $1,100,000.

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Definitions:

Abstract Principles

Fundamental concepts that are not tied to specific instances or examples, often guiding thinking and behavior in a broad range of situations.

Cognitive Abilities

The mental skills and capabilities for learning, thinking, reasoning, problem-solving, and processing information.

Lawrence Kohlberg

A psychologist best known for his theory of stages of moral development, which describes how individuals evolve in their understanding of morality throughout their lives.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.