Ransom Corporation Issued 10,000 Shares of $5 Par Common Stock

question 24

True/False

Ransom Corporation issued 10,000 shares of $5 par common stock for $22 per share. As a result of this transaction, Ransom's legal capital increased by $50,000.

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Definitions:

Horizontal Equity

The principle that individuals with similar income or assets should pay the same amount in taxes.

Vertical Equity

A principle in taxation where taxpayers with a greater ability to pay, pay more in taxes, demonstrating a progressive tax system.

Small Economy

An economy that is limited in size, characterized by a smaller population, lower GDP, and less impact on international markets compared to larger economies.

Horizontal Equity

A principle in taxation that asserts that individuals with the same income or resources should pay the same amount in taxes.