After deciding to incorporate, each of the three investors recieves 20,000 share

Question

After deciding to incorporate, each of the three investors recieves 20,000 shares at $2 par common stock on June 12 2011, in exchange for their co owned building ($200,000 fair value) and $100.000 total cash they contribute to the business. The next decision tha Mindy Oscar and Lori need to make is how to obtain financing for renovation and equipment. They understand the differnce between equity securities and debt securities, but do not understand the tax, net income and earnings per share consequences of equity versus debt financing on the future of their business. INSTRUCTIONS

Explanation / Answer

http://www.solutioninn.com/business/accounting/investments/after-deciding-to-incorporate-each-of-the-three-investors-receives

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