LS Issued 200 Common Shares to BH (Last Share Transaction

question 120

Multiple Choice

LS issued 200 common shares to BH (last share transaction was a year prior when LS sold 10 shares at $4 per share) ,and received a patent in full payment.The patent had a current market value of $2,000 and was carried on the books of BH at $1,500.Under ASPE,common shares should be credited for:

• A) $800
• B) $1,500
• C) $1,800
• D) $2,000
• E) This transaction has no commercial substance, therefore no entry is required.

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Definitions:

Constraint Function

A mathematical expression that employs variables and constants to define limitations or conditions on the optimization of an objective.

Right-Hand Side

The section or part of an equation that appears to the right of the equals sign (=).

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Steel sheets shaped like a 'C' in cross-section, commonly used in construction and manufacturing for structural support.

Solver

A computational tool used in mathematical programming and optimization to find the best solution to a problem given certain constraints.