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atluriram
atluriram, Professor
Category: Homework
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On February 1, Hoffman made an offer to subscribe to 100 shares

Resolved Question:

On February 1, Hoffman made an offer to subscribe to 100 shares of $10 par value common stock of Pack Corporation stock for $70 per share. On March 1, Pack Corporation agreed to the subscription offer. Under the stock subscription contract, Hoffman paid $2,000 immediately and agreed to pay $1,000 by April 15 with the remainder due on June 1. On May 15, Pack Corporation was forced into bankruptcy and the creditors are seeking payment from Hoffman. Which of the following is correct concerning the amount the creditors can require Hoffman pay?

A. None because although he has not paid the full subscription price, he fulfilled his contract fully up until the date of the bankruptcy.
B. None because he has paid in more than the $10 par value for 100 shares of stock.
C. None because Hoffman is not yet a shareholder until he fully pays for the stock.
D. $4,000 because this is the amount Hoffman still owes the corporation under the subscription agreement.
Submitted: 5 years ago.
Category: Homework
Expert:  atluriram replied 5 years ago.

atluriram :

Sir/madam

atluriram :

I hereby submit the answer.

atluriram :

---------------------------

atluriram :

The correct answer is D) $4,000 because this is the amount Hoffman still owes the corporation under the subscription agreement.

atluriram :

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atluriram :

With regards

atluriram :

atluri ramesh

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