Q 26

Mixed Inc.,a cement manufacturer,issued $5,000 of common stock to their attorney for legal services involving the formation of the company.In reality,the services were worth only $1,000.It can be said that the attorney has been issued a _____ and would be liable to the corporation for the $4,000 difference. A)zero coupon stock B)watered stock C)treasury stock D)municipal stock E)junk stock

Multiple Choice