Answer:
option A is the correct choice
Paid-In Capital in Excess of Par will receive a credit of $150,000
Explanation:
Details provided:
shares = 5000
share price = $5 / common stock
cash received = $175000
Now, we need to determine which option is correct
solution
We know we have a cash value of $175,000;
the total common stock is calculated as follows = shares × share price
Total common stock = 5000 × 5
Total common stock value = $25000
Thus, paid capital in excess = cash - total common stock value
Paid capital in excess = 175000 - 25000
Paid capital in excess is $150000
Thus, option A is correct
Paid-In Capital in Excess of Par will be credited for $150,000