QUESTION 22 Earned surplus: a. Equals the amount by which the total assets of a corporation exceed its total debts. b. is the sum of the consideration the corporation has received for its issued stock, excepting the consideration properly allocated to capital surplus but including any amount transferred to stated capital when a stock dividend is declared OC. May result from an allocation of part of the consideration received for no par shares, from any consideration in excess of par value received for par shares, or from a higher reappraisal of certain corporate assets. Od. Consists of the corporation's undistributed net profits, income, gains, and losses, clymputed from its date of incorporation