(Learning Objective 2: Describing the effect of a shares issuance on paid-in capital)

SHOE received $73,000,000 for the issuance of its shares on April 24. The par value of the SHOE shares was only $73,000. Was the excess amount of $72,927,000 a profi t 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.