Question Details

common stock is issued for services or non-cash assets



	1.	Which of the following is an incorrect statement about a corporation?
a.	A corporation is an entity separate and distinct from its owners.
b.	Creditors ordinarily have recourse only to corporate assets in satisfaction of their claims.
c.	A corporation may be formed in writing, orally, or implied.
d.	A corporation is subject to numerous state and federal regulations.



2.	Legal capital per share cannot be equal to the
a.	par value per share of par value stock.
b.	total proceeds from the sale of par value stock above par value.
c.	stated value per share of no-par value stock.
d.	total proceeds from the sale of no-par value stock.



	3.	When common stock is issued for services or non-cash assets, cost should be
a.	only the fair value of the consideration given up.
b.	only the fair value of the consideration received.
c.	the book value of the common stock issued.
d.	either the fair value of the consideration given up or the consideration received, whichever is more clearly evident.



4.	When the selling price of treasury stock is greater than its cost, the company credits the difference to
a.	Gain on Sale of Treasury Stock.
b.	Paid-in Capital from Treasury Stock.
c.	Paid-in Capital in Excess of Par.
d.	Treasury Stock.

	5.	Sandoz Corporation was organized on January 1, 2013, with authorized capital of 500,000 shares of $10 par value common stock. During 2013, Sandoz issued 20,000 shares at $12 per share, purchased 2,000 shares of treasury stock at $13 per share, and sold 2,000 shares of treasury stock at $14 per share. What is the amount of additional paid-in capital at December 31, 2013?
a.	$0
b.	$2,000
c.	$40,000
d.	$42,000






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