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    book value of the common stock par account

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    Spridget Company has 1,000,000 shares of common stock authorized with par value of $3 per share, of which 600,000 shares are outstanding. The company received $7 per share when it issued shares to the public.


    What is the book value of the common stock par account and the additional paid in capital account?

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    Solution Preview

    When $7 was received, it would be divided between the par value and additional paid in capital. The amount that will be applied ...

    Solution Summary

    The solution explains how to calculate the book value.