On form 1120, how to determine value of capital stock?
On form 1120, how does one determine the value of capital stock on Schedule L?
For a publicly traded corp, I imagine it would be the value the stock is trading at multiplied by the number of shares, for each class of stock, on the last moment of the last day (ie. the closing price) of the fiscal year. Or do you have to use some sort of average price? And though many companies have preferred stock, where does one find quotes for this stocks. All the finance sites I've seen just give the value of the common stock.
For a private but large corp, I imagine you have to get an appraiser to do it. What methods do they use?
And for a tiny corp, what does one do? I guess one could do as follows: suppose you start the corp with 10k and 10000 shares, so the value of each share at the start of the year is $1. The corp has 2k of earnings which is retained, so its assets are 12k at the end of the year. The share price is now $1.20, and adjustment to shareholders equity is zero.