Illusions Corp. issues 8,000 shares of $24 par common stock for $29 per share. The amount credited to paid-in capital in excess of par is:

Name: Illusions Corp. issues 8,000 shares of $24 par common stock for $29 per share. The amount credited to paid-in capital in excess of par is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The amount credited to paid-in capital in excess of par is calculated by subtracting the par value from the issue price and then multiplying by the number of shares issued. Here, ($29 - $24) * 8,000 = $5 * 8,000 = $40,000.