Question

When par value capital stock is issued, capital stock is credited with the par value of the shares issued, regardless of whether the issuance price is equal to par, more than par, or less than par.a. Trueb. False

Answer 1

Answer:

False

Explanation:The Par value of a stock is has a different value when compared with its market value. Well established companies usually have have a higher market value when compared to its par value. The par value of a stock can be represented in three different ways

1) When the par value of a stock is equal with the market value.

2) When the par value of a stock is lower than the market value.

3) When the par value of a stock is Higher than the market value.

WHEN THE PAR VALUE OF A CAPITAL STOCK IS EQUAL TO THE CAPITAL STOCK IS ISSUED WITH THE PAR VALUE ONLY WHEN THE PAR VALUE IS EQUAL TO THE MARKET VALUE.