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2. A company's share count is determined by deducting the number of shares held in treasury from the total number of shares issued. 3. The total paid-in capital at year-end is $40,000.
The sum of money a firm has raised via the sale of shares to investors is known as paid-in capital. Common stock, preferred stock, and additional paid-in capital are added as balance-sheet line items to determine paid-in capital. The paid-in capital can be determined very simply from a company's balance sheet. Stockholders' equity-retained earnings plus Treasury stock equals Paid-in capital, according to the calculation. Retained earnings are a source of assets acquired by a firm, similar to paid-in capital. Paid-in capital refers to the stockholders' actual investment, whereas retained earnings refers to the stockholders' investment made possible by earnings that have not yet been taken. Paid-in Capital: Capital that a corporation has obtained from sources aside than its regular business operations. The selling of the corporation's own ordinary and preferred stock is the most typical way to obtain paid-in capital.
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