When a company issues stock at an amount greater than the par value,a gain is recorded for the difference between the issue price and the par value.

Name: When a company issues stock at an amount greater than the par value,a gain is recorded for the difference between the issue price and the par value.
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Question

Quizplus · Accepted Answer

A premium on the issue of stock is not a gain, income, or profit for the corporation because the company is dealing with its own stock.

When a Company Issues Stock at an Amount Greater Than