(Solution) - Mitchell Corporation received 11 500 000 for the issuance of its stock -(2025 Original AI-Free Solution)

Paper Details

Mitchell Corporation received $11,500,000 for the issuance of its stock on May 14. The par value of the Mitchell Corporation stock was only $ 11,500. Was the excess amount of $ 11,488,500 a profit to Mitchell Corporation? If not, what was it?
Suppose the par value of the Mitchell Corporation stock had been $2 per share, $4 per share, or $7 per share. Would a change in the par value of the company's stock affect Mitchell Corporation's total paid-in capital? Give the reason for your answer.