Indicate whether each of the following statements is true or false.
A person may favor the corporate form of organization for a risky business enterprise primarily because a corporation”s shares can be easily transferred.
In the event of corporate liquidation, stockholders whose stock is preferred as to assets are entitled to receive the par value of their shares before any amounts are distributed to creditors or common stockholders.
The par value of a share of capital stock is no indication of the market value or book value of the share of stock.
When 10,000 shares of USD 20 par value common stock are issued in payment for a parcel of land with a fair market value of USD 300,000, the Common Stock account is credited for USD 200,000, and the Paid-In Capital in Excess of Par Value —Common account is credited for USD 100,000.