If a Corporation Has Issued Common Stock at Various Prices

question 17

Multiple Choice

If a corporation has issued common stock at various prices that exceed par value,legal capital will be made up of the

• A)par value of the shares issued.
• B)total stockholders' equity plus total liabilities.
• C)total amount of contributed capital.
• D)total amount of contributed capital plus retained earnings.

---

Definitions:

Discharging

The process of fulfilling or settling a debt, obligation, or legal liability, effectively freeing one from the responsibility.

Judgment

A decision of the court.

Conditions Precedent

Contractual stipulations that must be met before a contract becomes effective or before an obligation must be fulfilled.

Frustrated Contract

A contract that, through no fault of either party, is rendered incapable of being performed due to an unforeseen event, leading to the contract being void and freeing all parties from their obligations.