Question

The distribution of stock rights to existing common stockholders will increase paid-in capital at the

Answer 1

Answer:

Date of issuance of rights - No

Date of exercise of the rights - Yes

Explanation:

The distribution of stock rights to existing common stockholders will increase paid-in capital at the date of exercise of the rights.

Actually, Paid in capital increases whenever funds are received. This means on the day the rights are exercised and not when the rights are issued.