Porter Corp

question 39

Multiple Choice

Porter Corp.purchased its own par value shares on January 1, 2010 for $20,000 and debited the treasury shares account for the purchase price.The shares were subsequently sold for $12,000.The $8,000 difference between the cost and sales price should be recorded as a deduction from

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

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Definitions:

Sales Presentation

A pitch or demonstration aimed at persuading potential buyers to purchase a product or service.

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Memorized Sales Presentation

A sales strategy where the salesperson memorizes a sales pitch and delivers it verbatim to each potential customer.

AIDA Approach

A marketing strategy model that stands for Attention, Interest, Desire, and Action, used to guide the process of advertising and sales techniques.