Porpoise Corporation Acquired Sims Company Through an Exchange of Common

Multiple Choice

Porpoise Corporation acquired Sims Company through an exchange of common shares.All of Sims' assets and liabilities were immediately transferred to Porpoise.Porpoise Company's common stock was trading at $20 per share at the time of exchange.The following selected information is also available: $\begin{array}{lcc} &\text { Porpoise Company }\\& \text { Before Acquisition } & \text { After Acquisition } \\\text { Par value of shares outstanding } & \$ 200,000 & \$ 250,000 \\\text { Additional Paid in Capital } & 350,000 & 550,000\end{array}$ What number of shares was issued at the time of the exchange?

A) 5,000
B) 17,500
C) 12,500
D) 10,000