If 10,000 shares with par value of $15/share are issued for $20/share,how much will be presented as "contributed capital" for financial statement purposes?
A)$10,000
B)$50,000
C)$150,000
D)$200,000

Question

Quizplus · Accepted Answer

Contributed capital is the amount of capital that a company receives from investors in exchange for stock. In this case, the shares were issued for $20 per share, which is $5 more than the par value of $15 per share. Therefore, the contributed capital would be calculated as follows: 
10,000 shares x $20/share = $200,000. 
Therefore, the correct choice is D.

If 10,000 Shares with Par Value of $15/share Are Issued