91) Blu corporation issued 1,000 common shares in exchange for a new commercial band saw. At the time of this transaction the shares were trading at $10 and the fair value of the saw was at $12,000. This transaction would be recorded at $10,000.
92) When shares are initially issued, their stated value is set by the market place.
93) When shares are issued, their stated value is set by the brokerage firm.
94) When shares are issued, their stated value is set by the board of directors.
95) Once a share is sold, it is consider issued.
96) The conversion of preferred shares into common shares will not affect the assets and liabilities of a corporation.
97) One reason a company will repurchase its own shares is to help avoid a takeover of the company by an outside party.
98) Contributed Capital is credited for the price paid when a share repurchase occurs.
99) When a company repurchases its shares, total shareholders' equity decreases by the cost of the repurchased shares.
100) One reason that a corporation repurchases its shares is to resell the shares in the future at a higher price.