A Corporation Has Authorized Share Capital of 1 Million Shares

question 79

Essay

A corporation has authorized share capital of 1 million shares, of which 800,000 shares are issued and 200,000 are treasury shares.Construct the equity portion of the balance sheet if the net common equity is $40 million, all shares were issued with a par value of $1 and an issue price of $25, and retained earnings are $30 million.

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Definitions:

Fragmented Culture

An organizational culture characterized by disunity and an absence of shared beliefs or values among its members.

Disconnection

The process or state of being detached or separated from something.

Group

Three or more people who work independently to attain organizational goals.

Collectivist Culture

A social pattern that emphasizes group goals and the importance of cohesion within social or occupational groups.