How much will be recorded as a firm's additional paid-in capital if it issues 1 million shares that have a $5 par value for $15 per share? (Use dollar values)
A)$0
B)$5,000,000
C)$10,000,000
D)$15,000,000

Question

Quizplus · Accepted Answer

The additional paid-in capital is the difference between the amount received per share ($15) and the par value per share ($5). Therefore, additional paid-in capital per share is $10. For 1 million shares, the total additional paid-in capital is $10 x 1,000,000 = $10,000,000.

How Much Will Be Recorded as a Firm's Additional Paid-In