If a corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? 2. Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer.

If a corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called? 2. Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter15: Contributed Capital

Section: Chapter Questions

Problem 7GI

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If a corporation when formed sets a par value for its shares low and issue common stock for a price above par, what is this amount above par called?

2. Can this amount be treated as a gain, income, or profit for the corporation? Please give the reason for your answer.

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