Panton,Inc Glotfelty Issues 5,000 Shares of Previously Unissued Stock to Panton

Essay

Panton,Inc.acquired 18,000 shares of Glotfelty Corp.several years ago for $30 per share when Glotfelty had a book value of $450,000.Before and after that time,Glotfelty's stock traded at $30 per share.At the present time,Glotfelty reports the following stockholders' equity: $$\begin{array} { | l | r | } \hline \text { Common stock, } \$ 10 \text { par value (20,000 shares outstanding) } & \$ 200,000 \\\hline \text { Additional paid in capital } & 100,000 \\\hline \text { Retained earnings } & \underline { 300,000 } \\\hline & \underline { \underline { \$ 000,000 } } \\\hline\end{array}$$
Glotfelty issues 5,000 shares of previously unissued stock to Panton for $35 per share.
Required: Describe how this transaction would affect Panton's books.