The legal capital of a corporation may be any of the following except

A) the stated value of the stock
B) the par value of the stock
C) the market value of the stock at the balance sheet date (assuming the market value differs from the par or stated value)
D) the entire proceeds from the stock issuance

Question

ashley rullo · Accepted Answer

Final Answer : C, Explanation :  Legal capital is typically defined as the portion of a company's equity that cannot legally be distributed to shareholders as dividends and is determined by the par value or stated value of the issued stock, not the market value. Market value fluctuates and is not a factor in determining legal capital.

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