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Ann [662]
3 years ago
15

Following the formation of a corporation, which of the following terms best describes the process by which the promoter is relea

sed from, and the corporation is made liable for, preincorporation contractual obligations?
A. Assignment.
B. Novation.
C. Delegation.
D. Accord and satisfaction.
Business
1 answer:
FromTheMoon [43]3 years ago
7 0

Answer:

The correct option is option B

Novation.

Explanation:

Novation is the substitution of a new contract in place of an old one. It is the act of replacing an obligation to perform with another obligation .

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Explanation:

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Sheridan Company issued $6,500,000 of 6%, 10-year bonds for $5,614,000. The straight line method of amortization is to be used.
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Answer:

The solution of the given query is explained throughout the segment below.

Explanation:

The given values are:

Company issued amount,

= $6,500,000

Rate of interest,

= 6%

Time,

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= \frac{6,500,000 -5,614,000}{10}

= \frac{886,000}{10}

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