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

question 69

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:

Phoneme

A phoneme is the smallest unit of sound in a language that can distinguish one word from another, such as the difference between the 'p' and 'b' sounds in "pad" and "bad".

Association

The linkage of two events, usually as the result of a specific experience.

Positive Explanatory Styles

A cognitive approach characterized by attributing positive events to stable, global, and internal factors, and negative events to unstable, specific, and external factors.

Hopelessness

The belief that negative events are inevitable and a sense of self-deficiency or unworthiness.