A was not able to fully pay his subscription for 1,000 shares of B Corporation’s stock. Thus, these shares were later sold at a public auction with the following bidders: C: 600 shares, D: 700 shares, and E: 620 shares. Which of the following statements is CORRECT? A will receive share certificate for 1,000 shares. C will receive share certificate for 400 shares. B Corporation will not receive any shares. D will receive share certificate for 700 shares.
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- X subscribed to a total of 1,000 shares of stock. His first subscription was for 600 shares which was fully paid and he was issued a stock certificate for 600 shares. For his second subscription of 400 shares, he only paid 40%. Is X entitle to vote for the 1,000 shares? Yes, since the unpaid shares have not been declared delinquent No, since X has not paid for the entire subscription No, but X is entitled to vote for 760 shares, corresponding to the total amount he paid Yes, X is entitled to vote for his entire subscription for he will be considered a debtor of the corporation for the unpaid shares. S subscribed to 100 shares of stock of C Corporation with a par value of P100 each, paying P 3,000 on his subscription. Subsequently S asked the President of C Corporation to release him from his subscription. The President of C Corporation consented provided that S forfeits to the corporation what he had already paid. However, C Corporation went into insolvency and an assignee was…Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at…
- Bonnie and Clyde are the only two shareholders in Getaway Corporation. Bonnie owns 60 shares with a basis of $4,400, and Clyde owns the remaining 40 shares with a basis of $13,500. At year-end, Getaway is considering different alternatives for redeeming some shares of stock. Evaluate whether each of the following stock redemption transactions will qualify for sale and exchange treatment. (Leave no answer blank. Enter zero if applicable.) Required: a. Getaway redeems 10 of Bonnie's shares for $3,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. b. Getaway redeems 25 of Bonnie's shares for $6,000. Getaway has $29,000 of E&P at year-end and Bonnie is unrelated to Clyde. c. Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end and Clyde is unrelated to Bonnie. Complete this question by entering your answers in the tabs below. Req A Req B Req C Getaway redeems 8 of Clyde's shares for $3,500. Getaway has $29,000 of E&P at year-end…A company invited applications for 1,00,000 shares of 10 each payable 23 on application, *3 on allotment, *2 on first call and 2 on final call. Applications were received for 1,25,000 shares and all were allotted on pro-rata basis. Anandi holding 6.000 shares failed to pay allotment money and her shares were forfeited immediately and half of these shares were re-issued immediately at 36 paid up. Kusum holding 10,000 shares failed to pay the first call money and her shares were immediately forfeited and 5,000 of these shares were re-issued as fully paid up. Final call will be called on how many shares?Brian Baluya was a subscriber of Global Appliance Corporation for 300 ordinary shares at P150 par value per share. He failed to pay his subscription balance of P27,000 which is equivalent to 180 shares despite lawful calls and notices being sent to him. The corporation declared all the shares to be delinquent and advertised this to an auction sale. Three (3) bidders were received all in sealed envelopes and signified their intentions to pay the subscription balance of P27,000 plus advertising expenses of P560 but differ on the share that each bidder wanted to acquire: Melanie Buenzuelan 170 shares Thelma Ciudadano 178 shares Gervacio Piator 180 shares Answer the following questions: What is the journal entry to record the delinquency sale of Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to Brian Baluya? After the auction sale and upon issuance of certificates of shares, how many shares shall be issued to the highest…
- In each of the following independent situations, determine if the redemption of shares will be treated as an exchange or as a distribution. For situations 1 – 2, the ownership of a corporation is: Andy 40 shares Barb 20 shares Cindy 40 shares Situation 1: The corporation redeems 10 shares of stock held by Barb. Situation 2: The corporation redeems 30 shares of stock held by Cindy. Situation 3: The corporation redeems 15 shares of stock held by Andy. Situation 4: Same facts as Situation 1 except Andy is Barb’s father. To answer this be sure to first review the “Attribution Rules”PROBLEM 2: On February 14,2019, Hogwarts Marketing Inc. was authorized to issue 2,000 ordinary shares with a par value of P1,000 share. The next day, the corporation received 600 shares subscriptions from six incorporators as well as 25% paid-up capital. On March 1,2019, the remaining balance was paid in full and share certificates were issued to them. The preceding transactions were properly recorded in the books of the corporation. During the month of March, the foregoing transactions occurred:NEED ASAP. Solve correctly and show your computations. NXP Corporation issues P15 par value ordinary shares during 2021. The company received subscription from Mr. Navarro for 25,000 shares at P18 per share receiving 45% of the subscription price. On due date, Mr. Navarro failed to pay the balance of the subscription. The shares were subsequently declared delinquent and were advertised for sale at a public auction incurring P4,000 for advertising the sale. At the public auction, the company received bids from Mr. Pineda for 10,000 shares, Mr. De Torres for 9,000 shares, and Mr. Belen for 12,000 shares. The balance of the subscription price was outstanding for two months and was subject to 12% interest. How much cash was collected from the highest bidder?
- BFAR Corp. was authorized to issue 500,000 ordinary shares with a par value of P10. One of its subscribers was unable to pay the balance of his subscription amounting to P12,000. He subscribed to 2,000 shares at P12 per share. The company had the delinquent subscription auctioned and expenses related to the bidding amounted to P3,000. In the auction, the bidders were as follows: Anna, 1,225 shares; Ben, 1,096 shares; Carl, 1,200 shares; and Dianne, 1,250 shares. How many shares should be awarded to the delinquent subscriber?Entity A is an unlisted entity, and its shares are owned by two directors. The directors have decided to issue 1,000 share options to an employee in lieu of many years' service However, the fair value of the share options cannot be reliably measured as the entity operates in a highly specialized market where there are no comparable companies. The exercise price is P100 per share, and the options were granted on January 1, 20X4, when the value of the shares was also estimated at P100 per share. At the end of the financial year, December 31, 20X4, the value of the shares was estimated at P150 per share and the options vested on that date. Requirement: Provide all the entries in 20x4. Answers based on the requirement.. :) thank you!Walton decided to issue additional new common stock. Mr. Adib Rahman, an individual investor purchased 100 shares of this stock from Munawar Associates, the underwriter. Would this transaction be a primary or a secondary market transaction? If Mr. Adib Rahman purchased previously outstanding Walton stock from another investor, then which financial market will this transaction be traded in?