1ACCG 923 Accounting Standards and PracticeFinancing company operations (Homework)Topic 4 : Chapter TwoREVIEW QUESTIONS3. Explain what can happen if a share issue is ‘underwritten’ and the effect that4. If a share issue is oversubscribed, what action can be taken in relation to excess money received on application?6. How should a company account for the legal costs of formation? Should the accounting treatment be the same as that for underwriting and other share issue costs?