Question
2.Lisah Inc. (a public company) was organized in 2021 to manufacture car seats. The corporation was authorized to issue an unlimited number of common shares.
2.Lisah Inc. (a public company) was organized in 2021 to manufacture car seats. The
corporation was authorized to issue an unlimited number of common shares. On March 1, 2021,
the corporation issued 500 common shares to the firm's lawyers for helping to organize the
corporation. The fair market value of the legal fees was $12,500. The entry to record the issue of
the 500 shares, which have a market value of $20 per share, would require a:
A. Debit to Common Shares for $12,500.
B. Debit to Legal Fees Expense for $10,000.
C. Credit to Common Shares for $10,000.
D. Credit to Common Shares for $12,500.
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