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While I analyzed the meaning of each area in question I discovered just how much I lacked in understanding of the subject. What I thought would be a simple answer to each of these questions now became more complicated, therefore, I am going to explain what I believe the answer is for each of these question based on what I have read.
Paid-in-capital and Earned Capital
Why is it important to keep paid-in-capital separate from earned capital? Paid-in-capital is defined as contributions made by investors in exchange for capital stock. Earned capital is the capital that develops from profitable operations of a company...
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