1. Suppose 100 shares of common stock have a par value of $2 each and are sold to shareholders for $10 per share. The capital surplus would be ($10 - $2) * 100

=
$8 * 100
= $800, and the total par value would be $2 * 100 =
$200. What difference does it make if the total capital contribution is reported as par value or capital surplus?