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Problem - Harry's wife Lila passes away in January of the current year. Fortunately, Lila had a $1 million life insurance policy. Harry elects to receive all $1 million in the current year and spends $200,000 of it on a luxury around-the-world trip with his new girlfriend. Compute the Harry's gross income from the life insurance?
a. $0
b. $200,000
c. $800,000
d. $1,000,000
On July 1, 2013, Stateside, Inc. issues 10,000 shares of $5 par value preferred stock at $50 cash per share and 20,000 shares of $1 par value common stock at $25 cash per share. What is the journal entry to record these transactions?
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Journalize the transactions, assuming that the common stock is no-par with a stated value of $1 per share.
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