Test Bank For Advanced Financial Accounting 8Th Edition By Baker, lembkey, King (Test Bank, All Chapters 100% Original Verified, A+ Grade) (Complete And Verified Study material) (1028pages) LEARNEXAMS

Chapter 01 Intercorporate Acquisitions and Investments in Other Entities Multiple Choice Questions In order to reduce the risk associated with a new line of business, Conservative Corporation established Spin Company as a wholly owned subsidiary. It transferred assets and accounts payable to Spin in exchange for its common stock. Spin recorded the following entry when the transaction occurred: 1. Based on the preceding information, what number of shares of $7 par value stock did Spin issue to Conservative? A. 10,000 B. 7,000 C. 8,000 D. 25,000 2. Based on the preceding information, what was Conser