All Assets and Liabilities Are Transferred to the Corporation

question 49

Multiple Choice

All assets and liabilities are transferred to the corporation.
3) The common stock is $10 par. Wilfred and Mike receive a total of 10,000 shares.
4) The partners share profits and losses in the ratio 7:3.
Based on the preceding information, the journal entry on the partnership's books to record distribution of stock to prior partners will include a debit to Mike, Capital for:

• A) $38,010.
• B) $31,500.
• C) $42,000.
• D) $44,300.

Understand the concept and application of Pigouvian taxes and subsidies as a means to correct market failures due to externalities.

Recognize the tragedy of the commons and overuse of common resources.

Analyze the impact of strategic behavior on market outcomes, including advertising and inter-firm competition.

Understand the concept of Nash equilibrium in games involving externality effects.

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