Use the Following Information to Answer the Question Below $\begin{array}{llr} \text { Cash} &200,000\\ \text { Common Stock} &&200,000\\\end{array}$

question 21

Multiple Choice

Use the following information to answer the question below. When Calvert Corporation was formed on January 1,2010,the corporate charter provided for 50,000 shares of $20 par value common stock.The following transactions were among those engaged in by the corporation during its first month of operation:
1) The corporation issued 200 shares of stock to its lawyer in full payment of the $5,000 bill for assisting the company in drawing up its articles of incorporation and filing the proper papers with the state agency.
2) The company issued 8,000 shares of stock at a price of $25 per share.
3) The company issued 7,000 shares of stock in exchange for equipment that had a fair market value of $160,000.
The entry to record transaction 2 would be:

• A)
• \(\begin{array}{llr}
• \text { Cash} &200,000\\
• \text { Common Stock} &&200,000\\
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text { Cash }&200,000\\
• \text { Common Stock } && 160,000 \\
• \text { Additional Paid-in Capital } && 40,000
• \end{array}\)
• C)
• \(\begin{array}{l}
• \text { Cash }&160,000\\
• \text { Additional Paid-in Capital } && 40,000 \\
• \text { Common Stock} && 200,000
• \end{array}\)
• D)
• \(\begin{array}{llr}
• \text { Cash } &160,000\\
• \text {Common Stock } &&160,000\\
• \end{array}\)

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Definitions:

Spearman's "g" Factor

A theory suggesting that general intelligence ("g") underlies all cognitive abilities, meaning that individuals who perform well in one cognitive domain tend to perform well in others.

Intellectual Abilities

Cognitive capacities that include reasoning, problem solving, planning, abstract thinking, complex idea comprehension, learning from experience, and more.

Mean Performance

The average outcome or result achieved in a specific task or activity, calculated by summing all individual results and dividing by the number of results.

Intellectual Task

A task that requires cognitive effort and mental processing, such as problem-solving or decision-making.