Alpha Company issued 7,500 shares of $10 par value common stock to stockholders, in exchange for $787,500 cash. Which of the following correctly describes the impact of this transaction on Alphas financial statements?

Additional paid-in capital of $712,500 is reported in stockholders' equity.

Stockholders have invested $862,500 as stockholders' equity.

Common stock is reported at $787,500 in stockholders equity.

A $787,500 investment is reported as a long-term investment.