If 10,000 shares of $2 par value common stock are issued for $10 per share,then additional paid-in capital will increase by ________.
A)$120,000
B)$100,000
C)$80,000
D)$20,000

Question

Quizplus · Accepted Answer

The additional paid-in capital is calculated as the difference between the issue price and the par value, multiplied by the number of shares. Here, ($10 - $2) * 10,000 = $80,000.

If 10,000 Shares of $2 Par Value Common Stock Are