Evergreen Corp. issues 12,000 shares of $5 par common stock for $8.50 per share. The amount credited to paid-in capital in excess of par is:

Question

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The total amount received from issuing the 12,000 shares of common stock is:

$8.50 per share x 12,000 shares = $102,000

The par value of the common stock is:

$5 per share x 12,000 shares = $60,000

The difference between the total amount received and the par value is the amount credited to paid-in capital in excess of par:

$102,000 - $60,000 = $42,000

Therefore, the correct answer is D, $42,000.