Explanation Additional paid-in-capital: It is an amount of capital received from the shareholders in excess of par value. Compute the additional paid-in capital of Corporation P: Additional paid-in capital } = { Issue of 20,000 shares in excess of par value + Issue of 1,000 shares for legal services in excess of par value } = ( 20,000 shares× ( $12–$10

Intermediate Accounting: Reporting and Analysis

2nd Edition

ISBN: 9781285453828

Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher: Cengage Learning

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading struc…

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Chapter 15, Problem 4MC

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Compute the amount of additional paid in capital at December 31, 2016

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Intermediate Accounting: Reporting and Analysis

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Compute the amount of additional paid in capital at December 31, 2016

Solution Summary: The author explains that additional paid-in capital is an amount of capital received from shareholders in excess of par value. The above calculations are matching with the option d.

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Compute the amount of additional paid in capital at December 31, 2016

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