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Business, 19.07.2021 21:50 gaboalejandro833
The Gaston Company has sustained heavy losses over a period of time and conditions warrant that Gaston undergo a quasi-reorganization at December 31, 20X9. Selected balance sheet items prior to the quasi-reorganization are as follows: Property, plant and equipment was recorded in the accounting records at December 31, 20X9, at $12,000,000, net of accumulated depreciation. The appraised value was $8,000,000. Stockholders' equity on December 31, 20X9, was as follows: Common stock, par value $10 per share; authorized, issued and outstanding, 700,000 shares $7,000,000 Capital in excess of par $1,600,000 Retained earnings (deficit) $(900,000) $7,700.000 Under the terms of the quasi-reorganization, the par value of the common stock is to be reduced from $10 per share to $5 per share. Immediately after the quasi-reorganization has been accomplished, the total of stockholders' equity should be
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The Gaston Company has sustained heavy losses over a period of time and conditions warrant that Gast...
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