On January 1, 2019, Cocker Issued 10,000 Additional Shares of Common

question 91

Multiple Choice

On January 1, 2019, Cocker issued 10,000 additional shares of common stock for $21 per share.Popper did not acquire any of this newly issued stock.How would this transaction affect the additional paid-in capital of the parent company?

• A) $0.
• B) Decrease it by $23,240.
• C) Decrease it by $68,250.
• D) Decrease it by $45,060.
• E) Decrease it by $64,720.

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Definitions:

Involuntary Dissolution

The forced ending of a corporation or partnership by legal means, often as a result of legal or regulatory action.

Gridlock

A situation, often in an urban context, where congestion and overcrowding lead to complete immobilization of traffic. Alternatively, it refers to a deadlock situation where no progress can be made in negotiations or decision-making, often in political contexts.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them partial ownership.

Universal Requirements

Standard criteria or conditions that are globally applicable or necessary across different contexts or systems.