Question

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Answer 1

b. in excess of the par value from the original sale of common stock

Step-by-step explanation:

The additional paid-in is the difference between the par value of a share and the value on which they are issued.

For example:

10,000 par value $5 issued at $8.60

`$$issued - par value = additional paid-in`

8.60 - 5 = 3.60 paid-in per share

10,000 shares * $3.6 = $36,000 total paid-in