Answer:
$570,000
Explanation:
The computation of total paid-in capital is shown below:-
Common stock issued for cash
Cash Dr, $270,000 (20,000 × $13.50)
To Common Stock $200,000 (20,000 × $10)
To Additional paid in capital $70,000 (20,000 × ($13.50 - $10)
(Being common stock issued for cash is recorded)
Common stock issued for patent
Patent (FMV of patent) Dr, $300,000
To Common Stock $200,000 (20,000 × $10)
To Additional paid in capital $100,000 (20,000 × $10 ÷ 2)
(Being common stock issued for patent is recorded)
For recording this two entries we debited the cash as it rise assets and at the same time it also rise the overall stockholder equity so common stock and the additional paid in capital for common stock is credited
So,
Total paid in capital = Common Stock + Additional paid in capital
= ($200,000 + 200,000) + ($70,000 + $100,000)
= $400,000 + $170,000
= $570,000
