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Company account for the legal costs of formation

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Reference no: EM131032487

1. How should a company account for the legal costs of formation? Should the accounting treatment be the same as that for underwriting and other share issue costs?

2. What is a rights issue? Distinguish between a renounceable and a non-renounceable rights issue. How would a company account for such issues?

Each answer should be min 300 words in proper formatting

Thank You

3. What is private placement of shares? What are the advantages and disadvantages of a private placement

Reference no: EM131032487

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