Clam Corp. issues 1,000 shares of $10 par value preferred stock and 3,000 shares of $1 par value common stock for $48,000

Paid in capital in excess of par is essentially the difference between the fair market value paid for the stock and the stock’s par value. In other words, it’s the premium paid for an appreciated stock. Paid in capital in excess of par is created when investors pay more for their shares of stock than the par value.

Solution-

The relative market value of the common stock is:

common stock = 30,000/50,000 * $48,000 = $28,800

less the $3,000 par value of common stock

common stock = $28,800 - $3,000

common stock = $25,800

Therefore, we can conclude that the The Paid In Capital--Excess of Par, common stock is $25,800.

Your question is incomplete, but most probably your full question was:

Clam Corp. issues 1,000 shares of $10 par value preferred stock and 3,000 shares of $1 par value common stock for $48,000. The fair value of the preferred stock is $20 per share, and the fair value of the common shares is $10 per share. What is? the amount allocated to the Paid In Capital--Excess of Par, common stock

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