If Common Stock Is Issued for an Amount Greater Than

question 13

Multiple Choice

If common stock is issued for an amount greater than par value the excess should be credited to

• A) Cash.
• B) Retained Earnings.
• C) Paid-in Capital in Excess of Par.
• D) Legal Capital.

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Definitions:

Investee

denotes an entity in which another entity holds an interest, typically through investment.

Subsidiary

A company that is controlled by another company, typically referred to as the parent company, through ownership of more than half of its voting stock.

Partnership

A legal form of business operation between two or more individuals who share management and profits or losses.