Describe the effect of a stock issuance on paid-in capital
Response to the following problem:
LWL Corporation received $23,000,000 for the issuance of its stock on May 14. The par value of the LWL Corporation stock was only $23,000. Was the excess amount of $22,977,000 a profit to LWL Corporation? If not, what was it?
Suppose the par value of the LWL Corporation stock had been $4 per share, $8 per share, or $14 per share. Would a change in the par value of the company's stock affect LWL Corporation total paid-in capital? Give the reason for your answer.