Which of the following is not an advantage of the

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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
Which of the following is not an advantage of the corporate form of organization?oContinuous existence of the entity.oLimited liability of stockholders.oGovernment regulation.oEasy transfer of ownership. An arbitrary amount assigned by the board of directors to each share of a given class of no-par stock is: oQuasi-par value.oStated value.oRedemption value.oLiquidation value.Preferred stock that has dividends in arrears is:oNoncumulative preferred stock.oNoncumulative and callable preferred stock.oNoncumulative and convertible preferred stock.oCumulative preferred stock.
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Applied Calculus for the Managerial, Life, and Social Sciences
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Chapter 6 / Exercise 41
Applied Calculus for the Managerial, Life, and Social Sciences
Tan
Expert Verified
Quinn Corporation issued 10,000 shares of USD 20 par value common stock at USD 50 per share. The amount that would be credited to Paid-In Capital in Excess of Par Value—Common is: oUSD 200,000.oUSD 300,000.oUSD 500,000.oUSD 700,000.oNone of the above.You are given the following information: Capital Stock, USD 80,000 (USD 80 par); Paid-In Capital in Excess of Par Value—Common, USD 200,000; and Retained Earnings, USD 400,000. Assuming only one class of stock, the book value per share is: oUSD 680.oUSD 280.oUSD 80.oUSD 400.oNone of the above.Chapter 13 Learning ObjectivesPaid-in capital is presented in the stockholders' equity section of the balance sheet. Each source of paid-in capital is listed separately. Sources of paid-in capital are:Common stock.Preferred stock.In excess of par value or stated value (common and preferred).Stock dividends. Treasury stock transactions. Donations.Cash dividend of 3 percent on USD 100,000 of outstanding common stock: declared on July 1 and paid on September 15. July 1 Retained earnings (-SE) 3,000Dividends payable (+L) 3,000 Sept. 15 Dividends payable (-L) 3,000Cash (-A) 3,000 Ten percent stock dividend on 10,000 shares of common stock outstanding; par value, USD 100; market value at declaration, USD 125 per share (declared on January 1 and paid on February 1). Jan. 1 Retained earnings (1,000 shares x $125) (-SE) 125,000 Stock dividends distributable – Common (1,000 shares x $100) (+SE) 100,000Paid-in Capital – Stock dividends 1,000 shares x $25) (+SE) 25,000Feb. 1 Stock dividend distributable – Common (-SE) 100,000Common stock (+SE) 100,000Thirty percent stock dividend on 10,000 shares of common stock outstanding: declared on January 1 and payable on February 1; par value, USD 100.
Jan. 1 Retained earnings (3,000 shares x $100) 300,000 (-SE) Stock dividend distributable – Common 300,000(+SE)Feb.1Stock dividend distributable – Common 300,000(+SE) Common stock (-SE) 300,000Stock split: 1,000 shares of USD 50 par value common stock replaced by 2,000 shares of USD 25 par value common stock. Common stock - $50 par value (-SE) 50,000 Common stock - $25 par value (+SE) 50,000 Retained earnings appropriation: USD 75,000 appropriated for plant expansion. Retained earnings (-SE) 75,000 Retained earnings appropriated for plant expansion (+SE) 75,000 Treasury stock transactions: 100 shares of common stock were reacquired at USD 100 each and reissued for USD 105 each.

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