Midlothian acquires 100 percent of the outstanding voting shares of Cedar Company on January 1, 2020. To obtain these shares, Midlothian pays $400,000 cash and issues 20,000 shares of $1 par value common stock on this date. Midlothian's stock had a fair value of $10 per share. Midlothian also pays an additional $3,000 in stock issuance costs. At date of acquisition, the book values and fair values of Cedar's net assets amounted to $450,000 and $520,000, respectively.

How much additional paid-in capital was recorded as a result of the combination?

Select one:

A. $177,000

B. $180,000

C. $197,000

D. $200,000