When a Corporation Sells 10,000 Shares of $10 Par Value

question 41

True/False

When a corporation sells 10,000 shares of $10 par value common stock for $120,000, the Common stock account is credited for $100,000.

---

Definitions:

Tax Burdens

The measure of the financial impact of taxes on individuals, households, or businesses, typically reflecting the total taxes paid as a percentage of income.

Taxation Theory

The study of how taxes affect the economy, focusing on the optimal design of tax policies to achieve various economic objectives.

Net Worth

The total value of all assets owned by an individual or organization minus any liabilities or debts.

Assets

Economic resources owned or controlled by an individual or a business, which are expected to provide future benefits.