Panton, Inc

question 15

Essay

Panton, Inc. acquired 18,000 shares of Glotfelty Corp. several years ago for $30 per share when Glotfelty had a book value of $450,000. Before and after that time, Glotfelty's stock traded at $30 per share. At the present time, Glotfelty reports the following stockholders' equity: Glotfelty issues 5,000 shares of previously unissued stock to the public for $40 per share. None of this stock is purchased by Panton.Describe how this transaction would affect Panton's books.

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Definitions:

Constitutional Innovations

New or novel changes, developments, or improvements made to a country's constitution to better reflect the evolving needs and values of its society.

Appellate Jurisdiction

The authority of a court to review and revise the judgment or decision of a lower court.

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction, which reviews decisions made by lower courts.

Judicial Activism

A judicial philosophy that posits judges should use their power broadly to address societal wrongs and interpret the Constitution in the light of contemporary values and conditions.