The Trial Balance of WM Partnership Is as Follows

question 11

Multiple Choice

The trial balance of WM Partnership is as follows:
Wilfred and Mike decide to incorporate their partnership.The partnership's books will be closed,and new books will be used for W & M Corporation.The following additional information is available:
1.The estimated fair values of the assets follow:
2.All assets and liabilities are transferred to the corporation.
3.The common stock is $10 par.Wilfred and Mike receive a total of 10,000 shares.
4.The partners share profits and losses in the ratio 7:3.
-Based on the preceding information,the journal entry on W & M Corporation's books to record the assets and the issuance of the common stock will include a credit to Additional Paid-In Capital for:

• A)$0.
• B)$81,000.
• C)$31,000.
• D)$50,000.

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Definitions:

Caffeine

A stimulant chemical found in coffee, tea, and various other foods and drinks that affects the central nervous system, enhancing alertness and reducing fatigue.

Tobacco

A plant product containing nicotine which can be used in various forms, including smoking and chewing, often associated with health risks.

Benzodiazepines

A class of psychoactive drugs used primarily for treating anxiety, seizures, insomnia, and for inducing relaxation before surgeries.

Barbituric Acid

An organic compound used in the synthesis of barbiturate drugs, which act as central nervous system depressants.