A Company Is About to Issue 1,000 New Shares of Stock

question 92

Multiple Choice

A company is about to issue 1,000 new shares of stock at a market price of $33 per share.If the par value per share is $4,the increase in capital surplus from this stock issue will be:

• A) $33,000.
• B) $4,000.
• C) $29,000.
• D) $32,000.

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Definitions:

Tippecanoe

The site of an 1811 battle in the Indiana Territory, where future President William Henry Harrison defeated Native American forces led by Tecumseh's brother, Tenskwatawa.

Customs Collectors

Officials responsible for collecting duties imposed by a government on imported and exported goods.

Democratic-Republican

A political party in the United States that evolved in the 1790s and supported states' rights and agriculture, opposing the Federalist Party.

Marbury V. Madison

A landmark U.S. Supreme Court case in 1803 that established the principle of judicial review in the United States, meaning that American courts have the power to strike down laws, statutes, and some government actions that they find to violate the Constitution.