1.The requirements for forming a corporation are determined by:

A.the laws of the state where the business is incorporated

B.Federal trade commission regulations

C.federal statutes

D.the Model Business Corporation Act

2.Indicate whether each of the items listed below most likely is reported in the income statement as Net Income (NI) or in the statement of comprehensive income as Other Comprehensive Income (OCI).Your answer must be either NI or OCI to be scored correctly.

A.Gain from foreign currency translation

B.Increase in the fair value of trading securities

C.Loss on sale of patent

D.Prior service cost

F.Gain on postretirement plan assets (actual return more than expected)