owner's equity

felines27 · #1 Jan 14, 2008, 05:08 PM

Why is it important to keep paid-in capital separate from earned capital?

delite · Jan 18, 2008, 11:01 PM

Quote:

Originally Posted by felines27

Why is it important to keep paid-in capital separate from earned capital?

paid in cap, reflects someone paying fo stock in the company over par, remainder of which goes to paid in cap. in additon, there are sonme transactions between shareholde and company that can produce A

delite · Jan 18, 2008, 11:04 PM

paid in cap represents someone paying in excess of par/book value. transactions between shareholders and the company regarding redemptions can also provide for paid in capital results.



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