Answer:
$1,340,000
Explanation:
The computation of the amount of aid-in capital - excess of par increase as a result of this transaction is shown below:
Total market value = Common stock + Additional paid-in capital account
Where,
Total market value is
= 5,600 hours × $260 per hour
= $1,456,000
Common stock
= 116,000 shares × $1
= $116,000
So, the additional paid in capital is
= $1,456,000 - $116,000
= $1,340,000
