A was not able to fully pay his subscription for 1,000 shares of B Corporation’s stock. Thus, these shares were later sold at a public auction with the following bidders: C: 600 shares, D: 700 shares, and E: 620 shares. Which of the following statements is CORRECT? A will receive share certificate for 1,000 shares. C will receive share certificate for 400 shares. B Corporation will not receive any shares. D will receive share certificate for 700 shares.

A was not able to fully pay his subscription for 1,000 shares of B Corporation’s stock. Thus, these shares were later sold at a public auction with the following bidders: C: 600 shares, D: 700 shares, and E: 620 shares. Which of the following statements is CORRECT? A will receive share certificate for 1,000 shares. C will receive share certificate for 400 shares. B Corporation will not receive any shares. D will receive share certificate for 700 shares.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter18: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 31P

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