LWL Corporation received $23,000,000 for the issuance of its stock on May 14. The par value of

Question:

LWL received $23,000,000 for the issuance of its stock on May 14. The of the LWL stock was only $23,000. Was the excess amount of $22,977,000 a profit to LWL If not, what was it?
Suppose the of the LWL stock had been $4 per share, $8 per share, or $14 per share. Would a change in the of the company’s stock affect LWL total paid-in capital? Give the reason for your answer.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... 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,...