Asked by Angelique Cobilla on Jun 19, 2024
Verified
The Additional Paid-In Capital account is reported on the balance sheet at the
A) current market value of the stock minus par value.
B) historical sales price of the stock minus the par value.
C) net realizable value of the stock minus par value.
D) discounted present value of the future dividends minus par value.
Additional Paid-In Capital
Capital received from investors for shares, exceeding the par value of the shares, often reflecting the premium paid over nominal value.
Market Value
The ongoing pricing level at which a service or asset is offered for buying or selling in the market environment.
Par Value
The nominal or face value of a bond, share of stock, or coupon as stated by the issuer.
- Determine and organize different forms of liabilities and equity as outlined in the balance sheet.
Verified Answer
JD
Jefferson De GuzmanJun 20, 2024
Final Answer :
B
Explanation :
The Additional Paid-In Capital account is reported on the balance sheet at the historical sales price of the stock minus the par value. This represents the amount of capital that exceeds the par value of the stock, based on the price at which the stock was originally sold.
Learning Objectives
- Determine and organize different forms of liabilities and equity as outlined in the balance sheet.