Rob owns Solar Fuel Corporation. Rob uses Solar Fuel's funds to pay his personal expenses, creates Thermal Power Inc to engage in the same business as Solar Fuel, transfers Solar Fuel's assets to Thermal Power, and petitions Solar Fuel into bankruptcy. This most likely warrants
A) a bonus to Rob for financial maneuvers
B) a discharge for Solar Fuel in bankruptcy.
C) a pierce of the corporate veil.
D) a review of Thermal Power's articles of incorporation.
C
You might also like to view...
Celfone Corporation is required to file a registration statement with the Securities and Exchange Commission. This statement must contain
a. a copy of prospectuses to be provided to investors. b. a description of securities being offered for sale. c. a record of pre-registration sales in securities. d. a sample of advertising to be used to attract investments in Celfone.
Which of the following statements is CORRECT?
A. The capital structure that minimizes a firm's weighted average cost of capital is also the capital structure that maximizes its stock price. B. The capital structure that minimizes the firm's weighted average cost of capital is also the capital structure that maximizes its earnings per share. C. If a firm finds that the cost of debt is less than the cost of equity, increasing its debt ratio must reduce its WACC. D. Other things held constant, if corporate tax rates declined, then the Modigliani-Miller tax-adjusted tradeoff theory would suggest that firms should increase their use of debt. E. A firm can use retained earnings without paying a flotation cost. Therefore, while the cost of retained earnings is not zero, its cost is generally lower than the after-tax cost of debt.
Universal Manufacturing uses a weighted-average process-costing system. All materials are introduced at the start of manufacturing, and conversion costs are incurred evenly throughout the process. The company's beginning and ending work-in-process inventories totaled 10,000 units and 15,000 units, respectively, with the latter units being 2/3 complete at the end of the period. Universal started 30,000 units into production and completed 25,000 units. Manufacturing costs follow.Beginning work in process: Materials, $60,000; conversion cost, $150,000Current costs: Materials, $180,000; conversion cost, $480,000Universal's equivalent-unit cost for conversion cost is:
A. $25.20. B. $18.00. C. $13.71. D. $21.00. E. None of the answers is correct.
Answer the following statements true (T) or false (F)
1. Net income is sometimes called earnings or profit. 2. The first step in the processing of a transaction is to analyze the transaction and source documents. 3. Preparation of a trial balance is the first step in processing a financial transaction. 4. Source documents identify and describe transactions and events entering the accounting process 5. Items such as sales tickets, bank statements, checks, and purchase orders are examples of a business's source documents.