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MMLU / Ace Co. issued 1000 shares of its 10parvaluecommonstockfor15 per share…

Problem

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question

Ace Co. issued 1000 shares of its 10parvaluecommonstockfor10 par value common stock for 15 per share in cash. How should this transaction be reported in Ace's statement of cash flows for the year of issuance?
Plain-text mathematical notation (without MathML)
Ace Co. issued 1000 shares of its 10parvaluecommonstockfor15 per share in cash. How should this transaction be reported in Ace's statement of cash flows for the year of issuance?
Original LaTeX notation
Ace Co. issued 1000 shares of its $10 par value common stock for $15 per share in cash. How should this transaction be reported in Ace's statement of cash flows for the year of issuance?

choices

  1. $15000 cash inflow from financing activities.
  2. $10000 cash inflow from financing activities and $5000 adjustment to arrive at cash flows from operating activities.
  3. $15000 cash flow from investing activities.
  4. $10000 cash flow from investing activities and $5000 adjustment to arrive at cash flows from operating activities.

subject

professional_accounting

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Source and history

Official source

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