Which of the following is untrue regarding closely held corporations?
a. Most corporations in the U.S. are closely held.
b. Shareholders frequently restrict the transfer of shares to prevent "outsiders" from obtaining the stock.
c. Shareholders usually have little voice in the management and control of the business.
d. Some states have enacted special legislation to accommodate the needs of closely held corporations.
c
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The two items that must be estimated with respect to a plant asset in order to properly allocate cost to the affected accounting periods are ______________________________ and ______________________________
Fill in the blank(s) with correct word
Parton Corporation acquires 30% of the outstanding voting common shares of the Investee Corporation for $600,000 . Parton Corporation acquires the investment in Import Corporation by buying previously issued shares of Import Corporation from other investors. When Parton Corporation acquired 30% of Import Corporation's common shares for $600,000, Import Corporation's total shareholders' equity was
$1.5 million. Parton Corporation's cost exceeds the carrying value of the net assets acquired by $150,000 [ $600,000 - (0.30 x $1,500,000)]. Parton Corporation may pay this premium because a. the fair values of Import's net assets differ from their carrying values, only. b. of unrecorded assets (for example, trade secrets), only. c. the fair values of Import's net assets differ from their carrying values and/or unrecorded assets (for example, trade secrets). d. the liquidation values of Import's net assets differ from their carrying values, only. e. of unrecorded liabilities (for example, contingent liabilities), only.
A manager used her position in the company to develop a new business the company might have pursued on its own. This is a breach of the
a. duty of care. b. duty of non-competition. c. duty of loyalty. d. duty of recognition.
On January 1, Whitecastle Company established a petty cash fund for $250. On January 31, when the petty cash fund was replenished, it contained $70.40 in cash and petty cash receipts for: postage expense, $49.60; office supplies, $62; entertainment expense, $64.21Required:a) Record in general journal format the entry to establish the petty cash fund.b) Record in general journal format the entry to record the disbursements and replenish the petty cash fund.
What will be an ideal response?