When a Corporation Issues Capital Stock at a Price Higher

question 107

Multiple Choice

When a corporation issues capital stock at a price higher than the par value:

• A)The amount received over par value increases retained earnings.
• B)The entire issue price is credited to the Capital Stock account.
• C)The amount received in excess of par value constitutes profit to the issuing corporation.
• D)The amount received in excess of par value becomes part of paid-in capital.

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