Hawkeye Corporation Issues 100 Shares of No- Par Value Common

question 21

Multiple Choice

Hawkeye Corporation issues 100 shares of no- par value common stock for $20 per share. This transaction will include a credit to Common Stock for:

• A)$1,000 and a Gain on Issue of Common Stock for $1,000.
• B)$2,000.
• C)$1,000 and a credit to Retained Earnings for $1,000.
• D)$1,000 and a credit to Paid- in Capital for $1,000.

---

Definitions:

Alimony Deduction

A tax deduction previously allowed for payments made under a divorce or separation agreement to a spouse or ex-spouse, phased out after the 2018 tax year for new agreements.

Divorce Decree

A legal document formalizing the terms of a divorce, including arrangements for alimony, child support, and division of property.

Mortgage Payments

Mortgage payments are regular payments made by a borrower to a lender, typically consisting of principal and interest, for the repayment of a mortgage loan used to purchase property.

Self-Employed Health Insurance

A deduction available for the premiums paid on a health insurance policy covering a taxpayer who is self-employed, their spouse, and dependents.