Holden Bicycles has 2,000 shares outstanding each with a par value of $0.50. If they are sold to shareholders at $12 each,what would the capital surplus be?
A) $1,000
B) $12,000
C) $15,000
D) $23,000
E) $24,000

Question

Quizplus · Accepted Answer

The capital surplus is calculated as the difference between the selling price and the par value, multiplied by the number of shares. Here, it is ($12 - $0.50) * 2,000 = $23,000.

Holden Bicycles Has 2,000 Shares Outstanding Each with a Par