The legal capital of a corporation may be any of the following except the stated
ID: 2546169 • Letter: T
Question
The legal capital of a corporation may be any of the following except
the stated value of the stock.
the market value of the stock at the balance sheet date (assuming the market value differs from the par or stated value).
the entire proceeds from the stock issuance.
the par value of the stock.
a.the stated value of the stock.
b.the market value of the stock at the balance sheet date (assuming the market value differs from the par or stated value).
c.the entire proceeds from the stock issuance.
d.the par value of the stock.
Explanation / Answer
The legal capital of a corporation will not be the market value of the stock at the balance sheet date (assuming the market value differs from the par or stated value). Option B is correct
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