When common stock has a par value:
A)the liability of the stockholders is limited to the par value.
B)there will probably be additional paid-in capital on the balance sheet.
C)the market value of the stock will be higher than if there is no par value.
D)the paid-in capital will equal the par value of the number of shares issued.

Question

Quizplus · Accepted Answer

When common stock has a par value, any amount received from the issuance of stock above the par value is recorded as additional paid-in capital on the balance sheet.

When Common Stock Has a Par Value