Michael's Motor Scooters Has 1,000 Shares Outstanding Each with a Par

question 36

Multiple Choice

Michael's Motor Scooters has 1,000 shares outstanding each with a par value of $0.05. If they are sold to shareholders at $5 each,what would the capital surplus be?

• A) $4,400
• B) $4,500
• C) $4,750
• D) $4,950
• E) $5,000

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Definitions:

Act Utilitarian

A philosophy or ethical stance that evaluates the morality of an action based on the consequence or outcome of that specific act, aiming to maximize happiness or utility.

False Testimony

Giving deliberately untrue statements or evidence in a legal proceeding, typically under oath.

Utilitarianism

A moral philosophy that emphasizes the greatest good for the greatest number, assessing actions based on their outcomes or consequences.

Real World

A term referring to the tangible, everyday reality in which human beings live and interact, as opposed to theoretical constructs or fictional worlds.