(Solution) - Gaines Corporation was formed when it issued shares of common -(2025 Original AI-Free Solution)

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Gaines Corporation was formed when it issued shares of common stock to two of its shareholders. Gaines issued 5,000 shares of $10 par common stock to S. Gaines in exchange for $75,000 cash (the issue price was $15 per share). Gaines also issued 2,000 shares of stock to J. Caldwell in exchange for a one-year-old delivery van on the same day. Caldwell had originally paid $42,000 for the van.
a. What was the market value of the delivery van on the date of the stock issue?
b. Show the effect of the two stock issues on Gaine?s books in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by theevent.