Question: Sullivan Corp., issued stock above par on July 31. Answer the following questions about Sullivan Corp. 1. Sullivan Corp., received $6 million for the issuance
Sullivan Corp., issued stock above par on July 31. Answer the following questions about Sullivan Corp.
1. Sullivan Corp., received $6 million for the issuance of its stock. The par value of the Sullivan Corp., stock was only $4.5 million. Was the excess amount of $1,500,000 a profit to Sullivan Corp.? Did the excess affect net income? If not, what was it?
2. Suppose the par value of the Sullivan Corp., stock had been $2 per share, $5 per share, or $10 per share. Would a change in the par value of the company's stock affect Sullivan's total paid-in capital? When issuing stock, what does affect total paid-in capital?
1. Sullivan Corp., received $6 million for the issuance of its stock. The par value of the Sullivan Corp., stock was only $4.5 million. Was the excess amount of $1,500,000 a profit to Sullivan Corp.? Did the excess affect net income? If not, what was it?
2. Suppose the par value of the Sullivan Corp., stock had been $2 per share, $5 per share, or $10 per share. Would a change in the par value of the company's stock affect Sullivan's total paid-in capital? When issuing stock, what does affect total paid-in capital?
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Sullivan Corp 1 No the excess amount of 1500000 was not a profit to Sullivan No the ex... View full answer
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