If 100 Shares of $50 Par Value Stock Were Issued

question 24

Multiple Choice

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.

---

Definitions:

Acquisition

The process of learning or acquiring new information or skills.

Incentive

A factor, often a reward or benefit, that motivates an individual to perform an action or behave in a specific way.

Instinctive

Behavior that is innate and hardwired in an organism, often performed without being learned.

Self-awareness

Self-awareness is the conscious knowledge of one's own character, feelings, motives, and desires, enabling introspection and recognition of one's own emotional state.