Gupta Corp

question 52

Multiple Choice

Gupta Corp.purchased its own shares on January 1, 2017 for $20,000 and debited Treasury Shares 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 debit to

• A)Contributed Surplus to the extent that previous net "gains" from sales or retirements of the same class of shares are included therein; otherwise, to retained earnings.
• B)Contributed Surplus regardless of whether there have been previous net "gains" from sales or retirements of the same class of shares included therein.
• C)Retained Earnings.
• D)Loss from Sale of Treasury Shares.

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Definitions:

Suicide

The act of purposefully ceasing one’s own life.

Distress

Negative stress that arises from challenging or adverse situations, often leading to discomfort or even mental health issues.

Outpatient Care

Medical treatment provided to patients who do not require overnight hospitalization.

Psychological Disturbances

Disorders or disruptions of mental functioning that significantly impact an individual's thoughts, emotions, or behavior, causing distress or impairment in daily life.