Response to the following questions:
1. What are some factors that influence the market price of a corporation's stock?
2. When a corporation issues stock at a premium, is the premium income? Explain.
2. Land is acquired by a corporation for 15,000 shares of its $25 par common stock, which is currently selling for $70 per share on a national stock exchange. What accounts should be credited to record the transaction?
3. Indicate which of the following accounts would be reported as part of paid-in capital on the balance sheet:
a. Retained Earnings
b. Common Stock
c. Preferred Stock