On January 1, 2016, Morgan Company issued 60,000 shares of its total 200,000 authorized shares of $4 par value common stock for $4 per share. On December 31, 2016, Morgan Company’s common stock is trading at $8 per share. If Morgan Company does not issue any more common stock in 2016, how does the increase in value of its outstanding stock affect Morgan? a. This increase in market value of outstanding stock is not recorded in the financial statements of Morgan Company. b. Morgan should recognize additional net income for 2016 of $4 per share, or $240,000. c. Each shareholder must pay an additional $4 per share to Morgan. d. Paid-in capital at December 31, 2016, is $480,000 (or 60,000 shares times $8 per share).