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Capital surplus

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14. Holden Bicycles has 1,000 shares outstanding each with a par value of $0.10 each. If they are sold to shareholders at $10 each, what would the capital surplus be?

A. $100
B. $900
C. $9,900
D. $10,000
E. $11,000

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The solution explains how to determine the amount of capital surplus

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