Specialty Packaging Corporation began business in 2007 by issuing 20,000 shares of $5 par common stock for $8 per share and 5,000 shares of 6%, $10 par preferred stock for par. At year end, the common stock had a market value of $10. On its December 31, 2007 balance sheet, Specialty Packaging would report

a. Common Stock of $200,000.
b. Common Stock of $100,000.
c. Common Stock of $160,000.
d. Paid-in Capital of $150,000.

Ans: b. Common Stock of $100,000.

Business

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Enrico purchased a home stereo system from Wide Spectrum Sound for $4,000. When the components were all connected the sound produced was so muffled that it needed to be played at full volume in order to get a reasonable clarity

When Enrico returned to Wide Spectrum, the clerk pointed to a clause on the back of the sale receipt that stated: "There are no other warranties or conditions expressed or implied by common law, statute, or otherwise." The clerk also pointed out the same term in the manufacturer's warranty card included with the system. Which of the following would assist Enrico in obtaining a remedy for his defective sound system? A) The Sale of Goods Act. B) The fact that Enrico had not read the clause excluding warranties on the back of the sales slip. C) Consumer protection laws. D) Common law principles of contract E) Self-help

Business