Reference no: EM132829235
Problem 1: In the issuance of shares in exchange of non-cash assets, the non- cash asset is recorded in the books of the corporation at the
A. fair market value of the shares even if the fair market value of the non-cash asset is determinable
B. fair market value of the non-cash assets or the fair market value of the shares, whichever is determinable
C. par value of the share
D. whichever is lower between the fair market value of the non-cash assets and the fair market value of the shares.
Problem 2: The highest bidder in the sale of delinquent shares in a public auction is
A. Bidder who is willing to receive the highest number of shares in exchange of the unpaid subscription price.
B. Bidder who is willing to receive the lowest number of shares in exchange of the full subscription price.
C. Bidder who is willing to receive the highest number of shares in exchange of the full subscription price.
D. Bidder who is willing to receive the lowest number of shares in exchange of the unpaid subscription price.
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