Paid in capital
preferred stock, 5%, 5 par,650,000 shares authorized, 280,000 shares issued $1,400,000
common stock, par value $1 per share, 5,000,000 shares authorized, 1,350,000 shares issued and outstanding 1,350,000
Paid in capital in excess of par- common 2,400,000

My question is,
how did they get the 2,400,000?

Quote:

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Originally Posted by MSCG

Paid in capital
preferred stock, 5%, 5 par,650,000 shares authorized, 280,000 shares issued $1,400,000
common stock, par value $1 per share, 5,000,000 shares authorized, 1,350,000 shares issued and outstanding 1,350,000
Paid in capital in excess of par- common 2,400,000

My question is,
how did they get the 2,400,000?

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It is just part of the question

the par value is $1 per share, in excess of par means a premium was paid