Evergreen Industries has a $13,000 credit balance in Paid-In Capital–Treasury Stock. It sells 1,000 shares of treasury stock, which the company reacquired at $59/share, for $56/share. After the transaction, what will the balance be in the Paid-In Capital in Excess of Par–Treasury account?

A) $10,000 credit
B) $3,000 debit
C) $16,000 credit
D) $13,000 credit


A) $10,000 credit
Explanation: shares × difference between reacquired and sale price, then subtract this amount from the balance in the p-i-c account; ex: 1,000 ($59 - $56) = $3,000; $13,000 - $3,000 = $10,000

Business

You might also like to view...

When Starbucks CEO Howard Schultz was a child, he witnessed his family struggle after his father was hurt on the job. As a business leader now, Schultz provides comprehensive health insurance to all employees, even part-time workers. Schultz’s authentic leadership in this way is an example of ______.

A. balanced processing B. positive psychological capacities C. a critical life event D. management by exception

Business

Area sampling is a form of convenience sampling

Indicate whether the statement is true or false

Business

The following Amendments are applicable to religion:

a) 1st b) 13th c) 16th d) a&b e) all

Business

Messages to management are more persuasive when they include words such as "you must" or "we should."

Indicate whether the statement is true or false

Business