Answer:
The additional paid-in capital will increase by $850,000
Explanation:
Additional paid up capital: It is that paid up capital which is excess of par value. It is mentioned in the balance sheet when new shares is issued.
The computation of additional paid up capital are shown below:
= Difference of per share price × Number of shares
where,
difference = $22 - $5 = $17
So, the value equals to
= $17 × 50,000
= $850,000
So, the additional paid-in capital will increase by $850,000
