Porter Corp

question 82

Multiple Choice

Porter Corp. purchased its own par value stock on January 1, 2014 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from

• A) additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
• B) additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein.
• C) retained earnings.
• D) net income.

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Definitions:

Thank-you Note

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Speaking or performing without preparation or prewritten notes, often demonstrating skill in impromptu expression.

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The process of committing something to memory or learning it thoroughly through repetition.

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Rephrasing someone else's ideas or writing in your own words to clarify or simplify while maintaining the original meaning.