The Difference Between the Issue Price Per Share of the Stock

question 66

Multiple Choice

The difference between the issue price per share of the stock and the par value per share of the stock is credited to:

• A)Retained Earnings.
• B)Common Stock.
• C)Paid-in Capital in Excess of Par.
• D)Income Summary.

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Definitions:

Withholding Allowance

An exemption that reduces how much income tax an employer deducts from an employee's paycheck.

Federal Withholding Tax

Taxes automatically deducted from an employee's paycheck by the employer and paid to the federal government.

FICA Taxes

Federal Insurance Contributions Act taxes, which fund Social Security and Medicare, required to be paid by both employees and employers.

FICA Tax

Federal Insurance Contributions Act tax, a U.S. payroll tax that funds Social Security and Medicare, split between employers and employees.