Mountip Inc

question 32

Essay

Mountip Inc. was incorporated under provincial legislation with a December 31 year-end. The company has a single class of shares. As at December 31, 2019, it had 150,000 shares issued and outstanding. These shares had a book value of $5,700,000 on the balance sheet. During 2020, Mountip repurchased 5% of the issued shares from one of the minority shareholders at a cost of $48 per share. The company held these in treasury and later found a buyer for half of these shares at $52. The other half were sold at $46 to another investor.
Required:
Record the share transactions using the alternative two-transaction method for treasury stock.

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Definitions:

Ethnicity

The shared cultural practices, perspectives, and distinctions that set apart one group of people from another.

Labor Unions

Organizations formed by workers to advocate for their rights, better wages, benefits, and working conditions through collective bargaining with employers.

Racially Homogenous

Describes a population, group, or area predominantly composed of individuals from a single racial or ethnic background.

Civil Rights Movement

A social and political campaign in the United States during the 1950s and 1960s, aimed at ending racial discrimination and gaining equal rights for African Americans.