When Treasury Stock Accounted for by the Single-Transaction Method Is

question 21

Multiple Choice

When treasury stock accounted for by the single-transaction method is subsequently sold for more than its purchase price, the excess of the cash proceeds over the carrying value of the treasury stock should be recognized as:

• A)Income from continuing operations.
• B)an unusual gain.
• C)Increase in retained earnings.
• D)Increase in contributed capital.

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Definitions:

Strenuous Exercise

Physical activity that requires a significant amount of effort and energy, often leading to a substantial increase in heart rate and sweating.

Tidal Volume

The amount of air that is inhaled or exhaled during normal breathing without extra effort.

Inspiratory Reserve Volume

The maximum volume of air that can be inhaled after a normal tidal inhalation.

Volume Measurement

The process of determining the three-dimensional space occupied by a liquid, solid, or gas, using various instruments or formulas.