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Problem 1. x Corporation is engaged in selling pencils on wholesale basis. It is merely renting a bodega and 90% of its assets consist of its stocks of pencil. "A", a school supply dealer, purchased all the stocks of x Corporation. Is the transaction a sale of substantially all of the assets of the corporation requiring concurrence of stockholders representing 2/3 of the outstanding capital stock?

Problem 1. x Corporation is engaged in selling pencils on wholesale basis. It is merely renting a bodega and 90% of its assets consist of its stocks of pencil. "A", a school supply dealer, purchased all the stocks of x Corporation. Is the transaction a sale of substantially all of the assets of the corporation requiring concurrence of stockholders representing 2/3 of the outstanding capital stock?

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 92.1C
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ASSIGNMENT 5 Problem 1. x Corporation is engaged in selling pencils on wholesale basis. It is merely renting a bodega and 90% of its assets consist of its stocks of pencil. "A", a school supply dealer, purchased all the stocks of X Corporation. Is the transaction a sale of substantially all of the assets of the corporation requiring concurrence of stockholders representing 2/3 of the outstanding capital stock? Problem 2. "A", as owner of a certain number of shares of stock in X corporation, entered into a voting trust agreement (VTA) with B. On the basis of the VTA, B announced his desire to run for a seat in the Board of Directors of X Corporation. C, another stockholder, objected and questioned the eligibility of B to be a director of X corporation. Is C's contention correct?
Transcribed Image Text:ASSIGNMENT 5 Problem 1. x Corporation is engaged in selling pencils on wholesale basis. It is merely renting a bodega and 90% of its assets consist of its stocks of pencil. "A", a school supply dealer, purchased all the stocks of X Corporation. Is the transaction a sale of substantially all of the assets of the corporation requiring concurrence of stockholders representing 2/3 of the outstanding capital stock? Problem 2. "A", as owner of a certain number of shares of stock in X corporation, entered into a voting trust agreement (VTA) with B. On the basis of the VTA, B announced his desire to run for a seat in the Board of Directors of X Corporation. C, another stockholder, objected and questioned the eligibility of B to be a director of X corporation. Is C's contention correct?
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