Zigma Corporation is authorized to issue 2,000,000 shares of $4 par value capital stock.The corporation issued half the stock for cash at $8 per share,earned $336,000 during the first three months of operation,and declared a cash dividend of $60,000.The total paid-in capital of Zigma Corporation after three months of operation is:

Question

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The total paid-in capital is calculated by multiplying the number of shares issued (1,000,000) by the issue price per share ($8), resulting in $8,000,000. Earnings and dividends do not affect paid-in capital.

Zigma Corporation Is Authorized to Issue 2,000,000 Shares of $4