A Company with a $2,000,000 Deficit Undertakes a Quasi-Reorganization on November

question 25

Multiple Choice

A company with a $2,000,000 deficit undertakes a quasi-reorganization on November 1,2017.Certain assets will be written down by $400,000 to their present fair market value.Liabilities will remain the same.Capital stock was $3,000,000 and additional paid-in capital was $1,000,000 before the quasi-reorganization.How would the entries to accomplish these changes on November 1,2017,affect each of the following? Capital Stock Total Stockholders' Equity

• A)No effect No effect
• B)No effect Decrease
• C)Decrease Decrease
• D)Decrease No effect

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Energy-efficient

Using less energy to perform the same task or produce the same result, often associated with environmental sustainability.

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Practices or products that do not harm the environment.

Alternative

A choice or option that is available as a substitute to the main choice.

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