Stellar Inc. issued 20,000 shares of common stock, $5 par value, for $28 per share on March 28, 2020.

Related to this transaction, Stellar incurred legal and administrative costs totaling $5,000, paid in cash.

The $5.000 share issue costs

Are capitalized and then amortized.

Reduce the Paid-in Capital in Excess of Par-Common Stock account.

Are reported as an operating expense in income statement.

Reduce the Common Stock account.