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

question 5

Multiple Choice

A company with a $2,000,000 deficit undertakes a quasi-reorganization on November 1,2010.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 1,2010,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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Schizophrenia

A long-term mental disorder of a type involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

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