Porter Corp

question 12

Multiple Choice

Porter Corp.purchased its own par value shares on January 1, 2015 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:

Sugary Drink

A beverage containing added sugar or sweeteners, contributing to calories without offering nutritional benefits.

Glucose Tolerance Test

A medical test that measures the body's response to sugar to help diagnose diabetes or other conditions affecting blood sugar.

Fasting

The act of voluntarily abstaining from food and, in some cases, drink for a defined period for health, religious, or ethical reasons.

Sips Of Water

Small amounts of water drunk slowly, often recommended for hydration or soothing the throat.