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Financial Accounting

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Shareholders' Equity: Building Exchanged for Stock

FINACT-LHYCCU

On January 1, 2018, White Company was formed and its corporate charter authorized 100,000 shares of \$2 par value common stock. On the same day, the company issued 25,000 shares of the common stock in exchange for a building that had originally cost the shareholder \$275,000 in 2010. It was appraised for $300,000 at the end of December 2017.

How much will be recorded in the additional paid-in-capital account for common stock related to this transaction?

A

\$225,000

B

\$50,000

C

\$250,000

D

\$275,000