Ladder Distributors The Stockholders' Equity Section of the December 31, 2019, Balance

question 215

Multiple Choice

Ladder Distributors
The stockholders' equity section of the December 31, 2019, balance sheet is provided below:
Assume that all of the 20,000 shares of stock that was issued as of December 31, 2019, was issued for $42 per share. On March 1, 2020, the company reacquired 4,000 shares of its common stock for $50 per share.
-Refer to Ladder Distributors. Suppose the company reissued 1,000 shares of its treasury stock on June 1, 2020, for $44 each. Which of the following is true regarding the entry required to record this transaction?

• A)A debit to treasury stock is required for $44,000.
• B)A credit to treasury stock is required for $50,000.
• C)A credit to retained earnings is required for $6,000.
• D)A debit to paid-in capital from treasury stock transactions is required for $6,000.

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