QUESTION 1

William Corp. issued 10,000 shares of its $1 par value common stock for a building. The building was listed for sale at $500,000. Williams common stock is currently selling for $45 per share. William Corp. should record the building at

		$10,000
		$440,000
		$450,000
		$500,000

4 points

QUESTION 2

On March 1, 2004, Leo Corp. was formed by issuing 100,000 shares of $1 par value common stock at $5 per share and 20,000 shares of $100 par value preferred stock at $101 per share. If Leo earned $35,000 in its first year of operations, total stockholders equity at year end would be

		$335,000
		$735,000.
		$2,135,000.
		$2,555,000

4 points

QUESTION 3

If a company reissued at $20 per share 100 shares of treasury stock that it had previously acquired for $28 per share and there wasnt any Paid-in Capital from Treasury Stock, it would debit

		Loss on Sale of Treasury Stock for $800
		Paid-in Capital from Common Stock for $800
		Retained Earnings for $800
		Treasury Stock for $800

4 points

QUESTION 4

B Corp. issued 200,000 shares of common stock when it began operations in 2004 and issued an additional 100,000 shares in 2005. B also issued preferred stock convertible into 100,000 shares of common stock. In 2006, B purchased 75,000 shares of its common stock and held it in the treasury. At December 31, 2006, how many shares of B's common stock were outstanding?

		400,000
		325,000
		300,000
		225,000

QUESTION 16

Assume that Grandzol Company believes that $120,000 of a $600,000 deduction will not be utilized in future periods and that the tax rate is 40 percent for all periods. What is the amount of the valuation allowance?

		$48,000
		$120,000
		$192,000
		$240,000