What will net effect on additional paid-in capital account

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Question - Co. X issued 100,000 shares of $1 par value common stock with a fair market value of $5 per share for all of the outstanding $1 par value common stock of Co. Y and Co. Y is then dissolved. Co. X paid the following costs and expenses related to the business combination:

Costs of special shareholders' meeting to vote on the merger $12,000

Registering and issuing securities $10,000$ Accounting and legal fees $18,000

Required - What will the net effect on Additional Paid-in Capital account be at the date of acquisition?

A-$400.000

B-$360.000

C-$390.000

D-$372.000

Reference no: EM133015663

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