Our Chris Corp. (OCC) issued 5,000 Series 2 preference shares to a car dealer in exchange for
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Question:
Our Chris Corp. (OCC) issued 5,000 Series 2 preference shares to a car dealer in exchange for two delivery trucks with a collective fair value of $123,000. At the date of issue, OCC's shares were trading on the stock market at $24.90 each. The directly attributable costs of issuing the shares totaled $2,000, which was accounted for using the retained earnings method. What will be the net increase in OCC's preference share account as a result of this transaction?
a) $121,000
b) $122,500
c) $123,000
d) $124,500
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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