When 100 Shares of $1 Par Value Common Stock Are

question 115

Multiple Choice

When 100 shares of $1 par value Common Stock are issued at $25 per share, Paid-in Capital in Excess of Par value-Common Stock will:

• A) increase $100.
• B) increase $2,500.
• C) increase $2,400.
• D) stay the same.

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Definitions:

Carrying Value

The book value of an asset on a company’s balance sheet, calculated as its original cost minus accumulated depreciation or amortization.

Voting Shares

Another term for voting equity interests, specifically referring to shares that allow the shareholder to vote on corporate decisions.

Non-Operating Sources

Revenue or income that arises from activities not related to a company’s core business operations.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or discontinued.