ARM received $48,000,000 for the issuance of its stock on May 14. The par value of the

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ARM received $48,000,000 for the issuance of its stock on May 14. The par value of the ARM stock was only $48,000. Was the excess amount of $47,952,000 a profit to ARM? If not, what was it?
Suppose the par value of the ARM stock had been $4 per share, $8 per share, or $14 per share. Would a change in the par value of the company’s stock affect ARM’s total paid-in capital?
Give the reason for your answer.

Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...
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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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