Question
Able, Baker and Chapman partnership had assets with a book value of $240000 and a market value of $195000, liabilities of $90000 and capital balances
Able, Baker and Chapman partnership had assets with a book value of $240000 and a market value of $195000, liabilities of $90000 and capital balances for partners Able, Baker and Chapman of $70000, $30000 and $50000. The partners decide to incorporate the partnership. The new company ABC Inc. will issue 30000 shares with a par value of $2 each to the partners.
(a) How much shares will Able receive?
(b) What is Chapman's total value in the shares he received?
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Horngrens Financial And Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
6th Edition
978-0134486840, 134486838, 134486854, 134486846, 9780134486833, 978-0134486857
