Additional paid-in capital includes all of the following except

Question

Quizplus · Accepted Answer

Paid-in capital in excess of book value is not a valid component of additional paid-in capital. Additional paid-in capital represents the amount that investors have paid for stock that exceeds its par or stated value. It is recorded in the equity section of the balance sheet and can be used to fund future growth or pay dividends. Paid-in capital from treasury stock, paid-in capital in excess of par, and paid-in capital in excess of stated value are all valid components of additional paid-in capital.

Additional Paid-In Capital Includes All of the Following Except