If a corporation when formed sets a par value for its shares low and issue common  stock for a price above par, what is this amount above par called?  2. Can this amount be treated as a gain, income, or profit for the corporation?  Please give the reason for your answer.

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Q: What is the capital called that is contributed to the corporation by the stockholders and others?…

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Q: If the corporation when formed sets a par value for its shares low and issue common   stock for a…

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Q: Why would a corporation have multiple stock share classes?  What are your thoughts?

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Q: Is it true or false that corporations muse issue common stock, but may or may not decide to issue…

A: It is the decision taken by board of directors whether to issue preference shares/stock.

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Q: When a corporation has only one class of share capital, book value per share is computed as…

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Q: Which of the following are included in the total legal capital of a corporation assuming the…

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A: true  Corporations with simple capital structures (only Common Stock issued) need not present…

Q: f the corporation when formed sets a par value for its shares low and issue common   stock for a…

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Q: When a corporation issues new ordinary shares, which of the following will increase? I. Total…

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Q: How is preferred stock valued and after-tax Earnings of a corporation ultimately belong to whom?

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Q: Which one of the following statements is the most correct? A. Preferred stock has a fixed dividend…

A: Preferred stock function as bond and are usually guaranteed a fixed payment in the form of dividends…

Q: Explain the corporate characteristic termed “no mutual agency”   Explain the corporate…

A: Solution:- 1)Explanation of the corporate characteristic termed “no mutual agency” as follows…

Q: Which of the following correctly indicates how the issue price of common stock shares would be…

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Q: What is Treasury share? What are the reasons that the corporation for reacquisition of shares?

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Q: 2. Which of the following is a share of owners in a corporation? B. capital gain A. bond C. dividend…

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Q: Which statement is incorrect?  a. Book value per share is the claim of a shareholder in the net…

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Q: Define treasury stock. Why might a corporation acquire treasury stock? How is treasury stock shown…

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Q: How much is the authorized share capital? How much is the issued share capital? How many shares of…

A: The authorized share capital is the maximum amount of share capital that the company is authorized…

Q: True or False: Corporations are required to have a par value associated with their common stock.…

A: The question is multiple choice question. Required  True or Flase

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Q: What account should be debited when stock issuance costs are associated with the initial issuance of…

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Q: Generally, once declared, a cash dividend on ordinary shares becomes a liability of the corporation.…

A: Cash dividend is the amount of return paid to the shareholders of the entity from the profits.

Q: Discuss the various reasons why one corporation might invest in the stock of another corporation?

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A: S corporation is form of incorporation as a corporation as per IRS requirements. After meeting the…