If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?

Name: If 100 shares of $50 par value stock were issued at $75 per share, how much would constitute capital surplus?
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Question

Quizplus · Accepted Answer

Capital surplus is the amount received from issuing shares above their par value. Here, the shares were issued at $75, which is $25 above the $50 par value. For 100 shares, the capital surplus is 100 shares * $25 = $2,500.

If 100 Shares of $50 Par Value Stock Were Issued