Mountip Inc

question 13

Essay

Mountip Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2011,it had 150,000 shares issued and outstanding.These shares had a book value of $5,700,000 on the balance sheet.During 2012,Mountip repurchased 5% of the issued shares from one of the minority shareholders at a cost of $48 per share.The company held these in treasury and later found a buyer for half of these shares at $52.The other half were sold at $46 to another investor.
Requirement:
Record the share transactions using the alternative two-transaction method for treasury stock.

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Definitions:

Random Factor

A random factor is an unpredictable variable that can influence the outcome of an experiment or situation, often beyond control.

Dependent Variable

In research, the variable being tested and measured, expected to be influenced by another variable known as the independent variable.

Self-Report Biases

Distortions in self-report measures due to systematic differences between what respondents report and what is true, often driven by social desirability or memory inaccuracies.

Placebo Effects

Phenomena where an individual experiences a beneficial effect from a treatment that has no therapeutic properties, due to their belief that they are receiving an active treatment.