Paid-in capital in excess of par represents the amount of proceeds ________.
A) in deficit of the par value from the original sale of common stock
B) in excess of the par value from the original sale of common stock
C) in excess of the par value from the current value of common stock
D) in excess of the par value from the intrinsic value of common stock

Question

Quizplus · Accepted Answer

Paid-in capital in excess of par represents the amount of proceeds received by a company above and beyond the par value of its common stock. This occurs when the market price of the stock is greater than its par value, allowing the company to sell shares for more than their nominal value.

Paid-In Capital in Excess of Par Represents the Amount of Proceeds