1. A corporation has been defined as an entity separate and distinct from its owners. In what ways is a corporation a separate legal entity?2. Which is a better investment, in your opinion, 1) common stock with a par value of $5 per share or 2) common stock with a par value of $20 per share?3. Keane Corporation has 10,000 shares of $15 par value common stock outstanding when it announces a 3-for-1 split. Before the split, the stock had a market price of $120 per share. After the split, how many shares of stock will be outstanding, and what will be the approximate market price per share?4. ABC, Inc. purchases 1,000 shares of its own previously issued $5 par common stock for $11,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid in capital, and (d) total stockholders’ equity? (This question is worth 3 points and you will have one attempt to answer it).
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