O 0 o o CAPITAL STOCK AND ADDITIONAL PAID-IN CAPITAL Capital stock is stated at par value of the share. Proceeds and/or fair value of considerations received in excess of par value, if any, is recognized as additional paid-in capital. Incremental costs directly attributable to the issuance of new shares is deducted from the proceeds, net of tax.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Explain the data provided. What is a capital stock and additional paid-in capital? What does an entity do with it? How do they use it?
O 0 o o
CAPITAL STOCK AND ADDITIONAL
PAID-IN CAPITAL
Capital stock is stated at par value of the share.
Proceeds and/or fair value of considerations
received in excess of par value, if any, is recognized
as additional paid-in capital. Incremental costs
directly attributable to the issuance of new shares
is deducted from the proceeds, net of tax.
Transcribed Image Text:O 0 o o CAPITAL STOCK AND ADDITIONAL PAID-IN CAPITAL Capital stock is stated at par value of the share. Proceeds and/or fair value of considerations received in excess of par value, if any, is recognized as additional paid-in capital. Incremental costs directly attributable to the issuance of new shares is deducted from the proceeds, net of tax.
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