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Question - Robert Schuler, the owner of a sole proprietorship, is planning to incorporate his business. His capital account has a $101,000 after revaluation of the assets. Account totals $35.000. He will receive 10%, $14 par-value preferred stock with a total par value equal to the cash transferred. The balance of his capital is to be exchanged for shares of $22 par-value common stock with a total par value equal to the remaining capital.
1. How many shares of preferred stock should be issued to Schuler?
2. How many shares of common stock should be issued to Schuler?
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