State what is this amount above par called? 2. Determine if this amount will be considered a gain, income, or profit for the corporation? State reasons for your answers.
Brianna and Britney are two sisters opening a clothing store with no other competition within the area. Both Brianna and Britney believe they will gain huge profits in the first year, providing them with the ability to sell franchises in the future. They can start the business as a
Assume the corporate is formed and it sets a par value for its shares low and issue common stock for a price above par.
1. State what is this amount above par called?
2. Determine if this amount will be considered a gain, income, or profit for the corporation? State reasons for your answers.
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