Business Law Question. Please explain the answer and the law in effect. Thanks Jackson Corp. has an authorized capital stock of 1,000 shares with a
Business Law Question. Please explain the answer and the law in effect. Thanks Jackson Corp. has an authorized capital stock of 1,000 shares with a par value of $100 per share, of which 900 shares, all fully paid, were outstanding. Having an ample surplus, Jackson Corp. purchased from its shareholders 100 shares at par. Subsequently, Jackson, needing additional working capital, issued the 200 shares in question to Murphy at $80 per share. Two years later, Jackson Corp. was forced into bankruptcy. How much, if any, may the trustee in bankruptcy recover from Murphy? Please explain.
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