Grandiose secured an option to purchase a tract of land for

Assignment Help Accounting Basics

Reference no: EM13596707

Grandiose secured an option to purchase a tract of land for $100,000. He then organized Dunbar Corporation and subscribed to 51% of the shares of stock of the corporation for $100,000, which was issued to him in exchange for his 3-month promissory note for $100,000. Controlling the board of directors through his share ownership, he had the corporation authorize the purchase of the land from him for $200,000. He made no disclosure to the board or to other shareholders that he was making a $100,000 profit. He promptly paid the corporation for his shares and redeemed his promissory note. A disgruntled shareholder subsequently learned the full details of the transaction and brought suit against Grandiose on the corporation's behalf. Which of the following is a correct statement?

Reference no: EM13596707

Questions Cloud

Store equipment is purchased on january 1 2002 at a cost of : part 1 store equipment is purchased on january 1 2002 at a cost of 14000 and 1000 was spent on its installation. the

Calculate the amount of depreciation to report during the : calculate the amount of depreciation to report during the year ended december 312010 for equipment that was purchased

Pecan company had march sales and purchases of 63000 and : pecan company had march sales and purchases of 63000 and 47000 respectively. the company expects april sales to

For 2008 orchard corp reported after-tax net income of : for 2008 orchard corp reported after-tax net income of 5800000. during the year the number of shares of stock

Grandiose secured an option to purchase a tract of land for : grandiose secured an option to purchase a tract of land for 100000. he then organized dunbar corporation and subscribed

Pharmgen a pharmaceutical company was founded two years ago : pharmgen a pharmaceutical company was founded two years ago. like most pharmaceutical companies phargen did not make

Mueller corp manufactures compact discs that sell for 500 : mueller corp. manufactures compact discs that sell for 5.00. fixed costs are 28000 and variable costs are 3.60 per

A manufacturing company uses a job order cost accounting : a manufacturing company uses a job order cost accounting system. overhead is applied using pounds of direct materials

The filtering department started the current month with : the filtering department started the current month with beginning goods in process inventory of 55000. during the month

User Account

All Pages