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Dedicared Fun Corporation issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash. Give the entry
Dedicared Fun Corporation issued 2,000 shares of common stock and 400 shares of preferred stock for a lump sum of $72,000 cash.
- Give the entry for the issuance assuming the par value of the common stock was $5 and the fair value $30, and the par value of the preferred stock was $40 and the fair value $50. (Each valuation is on a per share basis and there are ready markets for each stock.)
- Give the entry for the issuance assuming the preferred stock has no ready market and the common stock has a fair value of $23 per share. Par values are the same as in part 1.
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