When a company sells stock for more than the par value, it will record a gain on sale for the amount in excess of par.

Name: When a company sells stock for more than the par value, it will record a gain on sale for the amount in excess of par.
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When a company sells stock for more than the par value, the excess amount is recorded as additional paid-in capital (or share premium) on the balance sheet, not as a gain on sale in the income statement.

When a Company Sells Stock for More Than the Par