Land Corporation reported the following:



Which of the following is included in the entry to record the corporation's purchase of 40,000 shares of its common stock for $12.00 per share?

A) Treasury Stock—Common is debited for $480,000.

B) Paid-In Capital from Treasury Stock Transactions is credited for $135,000.

C) Retained Earnings is debited for $480,000.

D) Common Stock—$5 Par Value is credited for $200,000.


A) Treasury Stock—Common is debited for $480,000.
Explanation: Total amount debited to Treasury Stock - Common = No. of shares × purchase price per share = 40,000 × $12.00 = $480,000

Business

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