Birch Woods Development,Inc

question 22

Multiple Choice

Birch Woods Development,Inc. ,includes,on the map of a twenty-lot development,a restriction that limits construction on each lot to one single-family house.Birch files the map in the appropriate public office.In each lot's deed is a reference to the map and a provision that each buyer "and his or her successors,heirs,or assigns" are bound to it.Cub buys one of the lots and later sells it to Dag.With respect to the restriction,Dag is

• A)bound.
• B)not bound,because Dag is not a "successor,heir,or assign."
• C)not bound,because Dag is not the original buyer of the lot.
• D)not bound,because of a lack of sufficient notice in the deed.

Differentiate between various equity components within a corporation including common stock, paid-in capital, and treasury stock.

Grasp the factors influencing the initial market price of stock and the role of dividends.

Understand the accounting treatment and valuation of noncash transactions involving stock issuance.

Identify the financial statement presentation and implications of stock transactions, including underwriting and organizational costs.