If 10,000 Shares with Par Value of $15/share Are Issued

question 47

Multiple Choice

If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed capital" for financial statement purposes?

• A)$10,000
• B)$50,000
• C)$150,000
• D)$200,000

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Definitions:

Simple Interest

A method of calculating interest where the charge is based on the original principal amount alone, without compounding.

Interest

Interest is the cost of borrowing money, typically expressed as a percentage of the principal amount.

Rate Of Interest

The percentage of principal charged by the lender for the use of its money.

Equivalent

Equal in value, amount, function, meaning, or the like.