Assumed Par Value inputs: gross assets and issued shares
The exact facts an eligible Delaware corporation needs before using the Assumed Par Value Capital Method.
Summary
Delaware's Assumed Par Value Capital Method starts with total gross assets from the relevant Form 1120 Schedule L context and all issued shares, including treasury shares. If total gross assets or issued shares are zero, Delaware's calculator disclaimer points the filer to Franchise Tax instead of a simple estimate.
Required inputs: total gross assets and all issued shares, including treasury shares.
| Gross assets | Form 1120 Schedule L total assetsRelative to the fiscal year ending in the calendar year of the report. |
|---|---|
| Issued shares | Issued shares including treasury sharesDelaware explicitly includes treasury shares for this method. |
| Zero input stop | Contact Franchise TaxDelaware's calculator disclaimer flags zero gross assets or issued shares. |
Why these two inputs matter
Assumed par value starts by dividing total gross assets by total issued shares, carrying the result to six decimal places. A wrong gross asset number or issued-share count can change the assumed par and the tax calculation.
Line-by-line input check
Before opening the official portal, write down the corporation's total gross assets, issued outstanding shares, treasury shares, authorized shares by class, and par value by class. Keep a source next to each number: Schedule L, standalone balance sheet, stock ledger, board records, or cap table export.
Issued shares are broader than issued outstanding
For this Delaware method, issued shares include treasury shares. The wizard asks for issued outstanding and treasury shares separately so the packet can show how the total was assembled.
When the product stops
Stop for no-par stock, zero gross assets, zero issued shares, capital amendments during the year, Large Corporate Filer status, or consolidated Schedule L facts that cannot be reconciled to the corporation.
Common questions
What are total gross assets for Delaware assumed par value?
Delaware points to total assets reported on U.S. Form 1120, Schedule L, relative to the company's fiscal year ending in the calendar year of the report.
Do treasury shares count as issued shares?
Yes. Delaware's method instructions require figures for all issued shares, including treasury shares.
Can I use consolidated Schedule L numbers?
Not in this MVP unless you have a clean standalone reconciliation for this corporation. Consolidated facts without company-level support are outside scope.
What if issued shares or gross assets are zero?
Delaware's calculator disclaimer tells filers to contact Franchise Tax when total gross assets and/or issued shares equal zero.
Related guides
Authorized Shares vs Assumed Par Value Capital Method
The two Delaware franchise tax methods an eligible par-value domestic corporation should compare before paying.
Issued shares vs authorized shares for Delaware franchise tax
How Delaware startup founders should separate authorized shares, issued shares and treasury shares before comparing tax methods.
Delaware franchise tax gross assets and Schedule L
A source-record guide for Delaware founders checking gross assets before using the Assumed Par Value Capital Method.
Official sources
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