Partnership net assets that are transferred to the corporation should be recorded in the new corporations' books at their book value.

A stock certificate is issued to the subcriber upon full payment of his subscription.

Both the partnership's owners and a corporation's ownes have limited liability for business debts.

Additional paid-in capital for the excess of the stock subscription price over par is recorded at the time of subscription.

Pre-operating costs are expenditures associated with incorporating a new business. Such costs should be recognized as expense in the first year of operations.