Consider Each Situation for Kathy, Inc. Below Independently

Essay

Consider each situation for Kathy, Inc. below independently.
· Kathy, Inc. issued 10,000 shares of its $25 par common stock current fair value of common is $35 per share) for a large tract of land. The land was appraised at $400,000. Kathy already had 500,000 shares of common stock outstanding.
· Kathy, Inc. issued 2,000 shares of $10 par Class A common stock at $12 and 100 shares of no-par Class B common stock at $20.
Required:
a. At what amount should land be recorded?
b. What is the total amount that should be recorded for additional paid-in capital from the second situation?