A Company Issued 1,000 Shares of $10 Par Value Common

Multiple Choice

A company issued 1,000 shares of $10 par value common stock in exchange for $15,000.Which of the following correctly describes the impact of this transaction on the financial statements?

A) A $15,000 gain is reported on the income statement.
B) Contributed capital in the amount of $10,000 is reported on the balance sheet.
C) Common stock is reported on the balance sheet at $15,000.
D) Additional paid-in capital of $5,000 is reported on the balance sheet.