Trinity Corp , issued stock above par on July 31 Answer the following questions about Trinity Corp 1 Trinity Corp , received $5 million for the issuance of its stock The par value of the Trinity Corp , stock was only $4 5 million Was the excess amount of $500,000 a profit to Trinity Corp Did the ex...

1 No the excess amount of 500000 was not a profit to Trinity No the excess did not ...

Trinity Corp., issued stock above par on July 31. Answer the following questions about Trinity Corp. 1.

Question:

Trinity Corp., issued stock above par on July 31. Answer the following questions about Trinity Corp.
1. Trinity Corp., received $5 million for the issuance of its stock. The of the Trinity Corp., stock was only $4.5 million. Was the excess amount of $500,000 a profit to Trinity Corp? Did the excess affect net income? If not, what was it?
2. Suppose the of the Trinity Corp., stock had been $1 per share, $5 per share, or $10 per share. Would a change in the of the company’s stock affect Trinity’s total paid-in capital? When issuing stock, what does affect total paid-in capital?

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,...