Use the Following Information to Answer the Question Below

question 6

Multiple Choice

Use the following information to answer the question below. When Langston Corporation was formed on January 1,20x5,the corporate charter provided for 100,000 shares of $10 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 400 shares of stock to its lawyer in full payment of the $10,000 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 16,000 shares of stock at a price of $50 per share.
3) The company issued 14,000 shares of stock in exchange for equipment that had a fair market value of $320,000.
-The entry to record transaction 3 is:

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Definitions:

Coupon Rate

The percentage rate of interest a bond yields annually, based on its nominal value.

Yield To Maturity

The total return anticipated on a bond if it is held until the due date, considering all interest payments and the capital gain or loss.

Semiannually

Occurring twice a year; a term often used to describe the frequency of interest payment, dividends, or other financial events.

Fisher Formula

An equation used in economics and finance that describes the relationship between nominal interest rates, real interest rates, and the inflation rate.