A corporation was organized in January year 1 with authorized capital of $10 par value common stock. On February 1, year 1, shares were issued at par for cash. On March 1, year 1, the corporation's attorney accepted 5,000 shares of the common stock in settlement for legal services with a fair value of $60,000. Additional paid‐in capital would increase on .

Additional paid‐in capital would increase by $10,000.

Explanation:

A corporation was organized in January year 1 with authorized capital of $10 par value common stock.

On February 1, year 1, shares were issued at par for cash.

On March 1, year 1, the corporation's attorney accepted 5,000 shares of the common stock in settlement for legal services with a fair value of $60,000.

Additional paid‐in capital would increase by $10,000.

Normally 5000 shares issued at par would cost (5,000 x $10) = $50,000

The difference between Par value of shares issued and the sum paid for the shares  = Additional Paid in capital which is $60,000 - $50,000 = $10,000

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.