Ask Question
5 September, 20:50

Lem Co., which accounts for treasury stock under the par value method, acquired 100 shares of its $6 par value common stock for $10 per share. The shares had originally been issued by Lem for $7 per share. By what amount would Lem's additional paid-in capital from common stock decrease as a result of the acquisition?

+4
Answers (1)
  1. 5 September, 22:07
    0
    By $100 Lem's additional paid-in capital from common stock decrease as a result of the acquisition

    Explanation:

    The computation of the decrease in the common stock is shown below:

    = (Number of shares * issue price per share) - (Number of shares * par value per share)

    = (100 shares * $7) - (100 shares * $6)

    = $700 - $600

    = $100

    As the additional share capital is a difference between the issued price and the par value and the same amount is decreased
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Lem Co., which accounts for treasury stock under the par value method, acquired 100 shares of its $6 par value common stock for $10 per ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers