If Stock with a $2 Par Value Was Issued for $12

question 33

Multiple Choice

If stock with a $2 par value was issued for $12 per share,

• A)common stock would be credited for $12 per share
• B)common stock cannot be issued for more than par value
• C)paid-in capital in excess of par should be credited for $10 per share
• D)gain on sale of common stock should be credited for $10 per share

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Definitions:

Breadth and Depth

Terms referring to the variety and range of product lines and products offered by a business; breadth refers to the number of product lines, depth to the variety within those lines.

Merchandise Lines

The range of products that a retailer offers for sale to customers, often categorized by type, style, or function.

Full-Service Retailer

A retail establishment offering a wide range of services to its customers in addition to selling products, including personal assistance and after-sales service.

Designer Brand

A brand associated with a recognized fashion designer, known for high-quality, stylish products often at a higher price point due to brand prestige.