Sec. 32.4520  Additional paid-in capital.

    (a) This account shall include the difference between the net 
proceeds (including discount, premium and stock issuance expense) 
received from the issuance of capital stock and the amount includable in 
Account 4510, Capital Stock, unless such difference results in a debit 
balance for that class of stock, in which case the amount shall be 
charged to Account 4550, Retained Earnings.
    (b) This account shall also include gains arising from the 
retirement and cancellation of capital stock. Losses from the retirement 
and cancellation of capital stock shall be charged to this account to 
the extent that there exist credits in this account for the same class 
of stock; otherwise to Account 4550.