S10-5. (Learning Objective 2: Describing the effect of a shares issuance on paid-in capital) SHOE received $75,000,000
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S10-5. (Learning Objective 2: Describing the effect of a shares issuance on paid-in capital)
SHOE received $75,000,000 for the issuance of its shares on April 24. The par value of the SHOE shares was only $75,000. Was the excess amount of $74,925,000 a profit to SHOE? If not, what was it?
Suppose the par value of the SHOE share had been $2 per share, $12 per share, or
$15 per share. Would a change in the par value of the company’s share affect SHOE’s total paid-in capital? Give the reason for your answer.
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Related Book For
Financial Accounting International Financial Reporting Standards Global Edition
ISBN: 9781292211145
11th Edition
Authors: Charles T. Horngren, C. William Thomas, Wendy M. Tietz, Themin Suwardy, Walter T. Harrison
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