McCoy has the following account balances as of December 31, 2020 before an acquisition transaction takes place.

Inventory	$125,000
Land	450,000
Buildings (net)	575,000
Common stock ($10 par)	600,000
Additional paid-in capital	300,000
Retained earnings	250,000

The fair value of McCoys Land and Buildings are $650,000 and $600,000, respectively. On December 31, 2020, Ferguson Company issues 30,000 shares of its $10 par value ($30 fair value) common stock in exchange for all of the shares of McCoys common stock. Ferguson paid $12,000 for costs to issue the new shares of stock. Before the acquisition, Ferguson has $800,000 in its common stock account and $350,000 in its additional paid-in capital account.

At the date of acquisition, by how much does Fergusons additional paid-in capital increase or decrease?

rev: 10_05_2019_QC_CS-182995

Multiple Choice

• $0.

• $588,000 increase.

• $600,000 increase.

• $612,000 increase.

• $900,000 decrease.