A firm has the balance sheet accounts, Common Stock and Paid-in Capital in Excess of Par, with values of $40,000 and $500,000, respectively. The firm has 40,000 common shares outstanding. If the firm had a par value of $1, the stock originally sold for ________.

To determine the price at which the stock originally sold, we first need to understand what the terms "Common Stock" and "Paid-in Capital in Excess of Par" represent.

1. Common Stock at par value: This is the value of the stock that is recorded on the balance sheet at the stock's par value. Since the par value is given as $1 per share and there are 40,000 shares outstanding, the Common Stock account would be $40,000 (which is $1 per share times 40,000 shares).

2. Paid-in Capital in Excess of Par (Additional Paid-in Capital): This represents the amount of money that shareholders paid over and above the par value when they bought the shares.

Now, let's calculate the originally sold price per share: We know that the Common Stock value is $40,000 (this represents 40,000 shares at $1 each). The Paid-in Capital in Excess of Par is $500,000.

To find out the total amount paid for the shares, you add the Common Stock value and the Paid-in Capital in Excess of Par: Total amount paid = Common Stock + Paid-in Capital in Excess of Par Total amount paid = $40,000 + $500,000 Total amount paid = $540,000

Since there are 40,000 shares, to find the original price per share, you would divide the total amount paid by the number of shares outstanding: Original price per share = Total amount paid / Number of shares outstanding Original price per share = $540,000 / 40,000 shares Original price per share = $13.50

The stock originally sold for $13.50 per share.