Locust corporation issued 36 comma 000 shares of $4 par value common stock in exchange for a building with a market value of $ 170 comma 000. record the stock issuance.

Building a/c-------Dr      $170000

Common stock a/c-------Cr    $144000

Paid-in capital in excess of par value a/c------ Cr      $26000  

Explanation:

Given: Share issued= 36000

           Price per share= $4 par value.

           Building market value= $170000.

Finding the value of common stock.

Value of common stock=

∴ Value of common stock=

Excess of paid in capital with exchange of common stock=

∴ Excess of paid in capital with exchange of common stock=

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answer; ///i believe the correct answer is (c) laissez-faire;