Use the Following Information for Questions

question 20

Multiple Choice

Use the following information for questions.
When Oslo Ltd. was organized last year, they issued 100,000 no par value common shares for $ 1,200,000. Earlier this year, the corporation purchased 4,000 of these shares at $ 15 per share, to be held in the treasury, and three months later, sold 2,000 treasury shares at $ 19 per share. There were no other treasury share transactions.
-London Corporation has 50,000 no par value common shares authorized, issued and outstanding. All 50,000 shares were issued at $ 40 per share. Retained earnings are $ 40,000. If 3,000 of these shares were reacquired at $ 50 and were held as treasury shares,

• A) shareholders' equity would increase by $ 150,000.
• B) contributed surplus would decrease by at least $ 30,000.
• C) shareholders' equity would decrease by $ 150,000.
• D) common shares would increase by $ 150,000.

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