Public Equity Corporation acquired Lenore Company through an exchange of common shares. All of Lenore's assets and liabilities were immediately transferred to Public Equity. Public's common stock was trading at $20 per share at the time of exchange. Following selected information is also available. Public Equity Before acquisition After acquisition Par value of shares outstanding$200,000 $250,000 Additional paid-in capital$350,000 $550,000 Based on the preceding information, what number of shares was issued at the time of the exchange?
A. 12,500
B. 10,000
C. 17,500
D. 5,000
Answer: A
You might also like to view...
A business buyer who is considering a change in product specifications, terms, and possibly suppliers is most likely in a ________ situation
A) modified rebuy B) new task C) straight rebuy D) solution selling E) value analysis
________ is a computer-controlled warehouse that provides for the automatic placement of parts into and from designated places within the warehouse
Fill in the blanks with correct word
Project documents associated with the time management knowledge area include
A) milestone list. B) project funding requirements. C) scope document. D) project closure reports.
The National Association of Insurance Commissioners (NAIC) has drafted a "Life Insurance Policy Illustration" model law that most states have adopted. Which of the following statements concerning this model law is (are) true?
I. The policy illustration must include a narrative summary describing the basic characteristics of the policy. II. The policy illustration must include a numeric summary showing the premium outlay, the value of the accumulation account, the cash surrender value, and the death benefit. A) I only B) II only C) both I and II D) neither I nor II