Question
On May 1, 2019, Design Co. issues 20,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the
On May 1, 2019, Design Co. issues 20,000 shares of its $10 par value ($25 fair value) common stock in exchange for all of the shares of Silk Corp.'s common stock. Design paid $25,000 to lawyers, accountants and brokers for assistance in bringing about this acquisition. In addition, Design paid $10,000 for costs to issue the new shares of stock. Before the acquisition, Design has $500,000 in its common stock account and $900,000 in its additional paid-in capital account.
a. Immediately after the acquisition, what is the total balance in Design's additional paid-in capital account?
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