[jeff]

REG Resources:

Free REG Notes & Audio – https://www.another71.com/cpa-exam-study-plan

REG 10 Point Combo: https://www.another71.com/products-page/ten-point-combo

REG Score Release: https://www.another71.com/cpa-exam-scores-results-release

[Kenada]

I edited my post above

FAR 05/27/14; 786/110 - Done !

[Kenada]

I have another brain teaser.

Gallagher Corp issued 100,000 shares at 40 par value for 50 per share to various investors. Subsequently, Gallagher purchased back 10,000 of these shares for 30.00 per share and held them as treasury stock. When the price of the stock recovered somewhat, Gallagher sold this treasury stock to Thomas for 35.00 per share. Which of the following statements is correct?

I Gallagher's purchase of the stock at below par value is illegal'

II Gallagher's purchase of the stock below par value is void as an ultra vires act.

III Gallagher's resale of treasury stock at below par value is valid.

A I only

B II only

C III only

D I and II only

FAR 05/27/14; 786/110 - Done !

[Kenada]

I have another brain teaser.

Gallagher Corp issued 100,000 shares at 40 par value for 50 per share to various investors. Subsequently, Gallagher purchased back 10,000 of these shares for 30.00 per share and held them as treasury stock. When the price of the stock recovered somewhat, Gallagher sold this treasury stock to Thomas for 35.00 per share. Which of the following statements is correct?

I Gallagher's purchase of the stock at below par value is illegal'

II Gallagher's purchase of the stock below par value is void as an ultra vires act.

III Gallagher's resale of treasury stock at below par value is valid.

A I only

B II only

C III only

D I and II only

FAR 05/27/14; 786/110 - Done !

[Qlad]

@insiyah…did not get a chance to answer the earlier one….but this one i think the answer is C…not very sure…and don't know why too…lol

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@insiyah…did not get a chance to answer the earlier one….but this one i think the answer is C…not very sure…and don't know why too…lol

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[OCDisME]

I guess C for the new question about Gallagher.

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[OCDisME]

I guess C for the new question about Gallagher.

Becker Online - IL Candidate

FAR: 85
AUD: 85
BEC: 78
REG: 90

[Kenada]

Yes it is C and i did guess this one too… but when i looked at the Wiley explanation it didn't help me understand why my guess was right. Like not completely.

Par Value is the minimum amount that a corp may sell stock initially. Par Value does not apply to the corporations purchase of stock; nor does par value apply to treasury stock. Gallagher originally sold the stock at above par value.

FAR 05/27/14; 786/110 - Done !

[Kenada]

Yes it is C and i did guess this one too… but when i looked at the Wiley explanation it didn't help me understand why my guess was right. Like not completely.

Par Value is the minimum amount that a corp may sell stock initially. Par Value does not apply to the corporations purchase of stock; nor does par value apply to treasury stock. Gallagher originally sold the stock at above par value.

FAR 05/27/14; 786/110 - Done !

[Anonymous]

Question about bankruptcy, specifically with the involuntary petition.

If less then 12 creditors – 1 or more owed 14,425

If more then 12 creditors – 3 owed 14,425

Does this mean each individual creditor must have 14,425 in unsecured claims alone? the word in aggregate confuses me so much….for example if more then 12 creditors and you had 3 creditors but each only had 5,000 in unsecured claims, this wouldn't be enough to file bc it needs to be 14,425 each…? maybe by aggregate they mean in aggregate in respect to the individual creditors claims (as if the creditor had more then one claim against the debtor?)

[Anonymous]

Question about bankruptcy, specifically with the involuntary petition.

If less then 12 creditors – 1 or more owed 14,425

If more then 12 creditors – 3 owed 14,425

Does this mean each individual creditor must have 14,425 in unsecured claims alone? the word in aggregate confuses me so much….for example if more then 12 creditors and you had 3 creditors but each only had 5,000 in unsecured claims, this wouldn't be enough to file bc it needs to be 14,425 each…? maybe by aggregate they mean in aggregate in respect to the individual creditors claims (as if the creditor had more then one claim against the debtor?)

[Kenada]

I would say If 3 had 5000 each – then its the total of them (aggregate) that would qualify for the 14,425 rule.

FAR 05/27/14; 786/110 - Done !

[Kenada]

I would say If 3 had 5000 each – then its the total of them (aggregate) that would qualify for the 14,425 rule.

FAR 05/27/14; 786/110 - Done !

[Journhi]

Thank you, @UCMCPA !

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Journhi]

Thank you, @UCMCPA !

FAR: 62;79
AUD: 76
REG:67; 77
BEC: 68;66; 12/05/13

[Author]

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