Tricor, Corp., issued stock above par on July 31. Answer the following questions about Tricor, Corp.

1. Tricor, Corp., received \($30\) million for the issuance of its stock. The par value of the Tricor, Corp., stock was only \($30,000.\) Was the excess amount of \($29,970,000\) a profit to Tricor, Corp? Did the excess affect net income? If not, what was it?

2. Suppose the par value of the Tricor, Corp., stock had been \($1\) per share, \($5\) per share, or \($10\) per share. Would a change in the par value of the company’s stock affect Tricor’s total paid-in capital? When issuing stock, what does affect total paid-in capital?