Use the Following Information to Answer Questions Prague Corp

question 39

Multiple Choice

Use the following information to answer questions Prague Corp.is authorized to issue 400,000 no par value common shares.Subscribers agree to purchase shares at $15 per share with a 30% down payment.
-Presented below is information related to Madrid Corporation: The total amount that will be added to the Common Shares account when the final subscriptions are received will be

• A)$120,000.
• B)$240,000.
• C)$360,000.
• D)cannot be determined from the information given.

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Definitions:

Automatic Stay

Under the Bankruptcy Act, the suspension of all litigation against the debtor and his property, which is triggered by the filing of a bankruptcy petition.

Alimony

Financial support paid by one ex-spouse to another after divorce or separation, as dictated by a court order or agreement.

Bankruptcy Petition

A legal document filed by an individual or business entity declaring their inability to pay outstanding debts, seeking relief through bankruptcy proceedings.

Court Order

A formal directive issued by a court that requires a party to do or refrain from doing something; it's legally binding and enforceable.