10 in order to raise money for expansion the company

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10. In order to raise money for expansion, the company mortgaged the real estate it used in the business. It incurred accounting fees of $5,000 and appraisal fees of $2,000 related to this financing. The mortgage has a 10-year term and a 30-year amortization period. 11. In 2008, Nart issued 100 of its common shares to a third party investor for $25,000 per share. The legal expenses relating to the share issuance was $8,761 at that time. 12. During the year, the company bought the shares of another company for $350,000. In completing this transaction, legal fees of $7,500 were incurred. 13. Instead of borrowing money at the bank, the company decided to pay their income tax instalments late. This resulted in an interest charge from the Canada Revenue Agency in the amount of $900. The interest charge was recorded in the income tax expense. 14. Word processing computer software costing $750 and espresso machine costing $600 were purchased during the year. Since the amounts are below the capitalization threshold, the controller expensed these items.
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Christopher Reinemann
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