Pixel Points Inc

question 20

Essay

Pixel Points Inc. has a single class of shares. As at its year ended December 31, 2020, the company had 1,000,000 shares issued and outstanding. These shares have a book value of $5,000,000 on the balance sheet.
During 2021, Pixel Points repurchased 5% of the issued shares from one of the minority shareholders at a cost of $7 per share. The company held these shares in treasury and later found a buyer for half of these shares at $8 per share. The other shares were sold at $6 to another investor.
Required:
Assume the Pixel Points fallows the guidance in ASPE pertaining to accounting for equity transactions. Record the share transactions using the single-transaction method for treasury shares, which is the preferred accounting method.

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Definitions:

Thirty-Four

The numeral 34, representing a quantity or sequence; it does not have a specific definition outside of its numeric value.

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The number following fifteen and preceding seventeen, often denoting a specific quantity in a sequence.

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A strong allegiance to a particular political party and its policies, often leading to biased support regardless of evidence or arguments to the contrary.

State Legislator

An elected member of the legislative body within a state, responsible for making and amending state laws.