Paid-In Capital in Excess of Par Value-Stock Dividend account is used when:

Name: Paid-In Capital in Excess of Par Value-Stock Dividend account is used when:
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The Paid-In Capital in Excess of Par Value-Stock Dividend account is used when the stock's par value is lower than its market value. This account captures the difference between the market value of the shares distributed as a dividend and their par value, reflecting the additional paid-in capital from issuing stock dividends above par value.

Paid-In Capital in Excess of Par Value-Stock Dividend Account Is