If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?

A) $750
B) $7,500
C) $2,500
D) A corporation cannot issue stock for higher than the par value.

Question

Andrea Janusz · Accepted Answer

Final Answer : C, Explanation :  Capital surplus is calculated as the difference between the issue price and the par value, multiplied by the number of shares. Here, it's ($75 - $50) * 100 = $2,500.

If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?

A) $750
B) $7,500
C) $2,500
D) A corporation cannot issue stock for higher than the par value.

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Learning Objectives

Related questions

If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?A) $750B) $7,500C) $2,500D) A corporation cannot issue stock for higher than the par value.

Definitions

Learning Objectives

Learning Objectives

Related questions

If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?

A) $750
B) $7,500
C) $2,500
D) A corporation cannot issue stock for higher than the par value.