Coy, Inc Initially Issued 200,000 Shares of $1 Par Stock for for $1,000,000

question 87

Multiple Choice

Coy, Inc. initially issued 200,000 shares of $1 par stock for $1,000,000 in 2016. In 2017, the company repurchased 20,000 shares for $200,000. In 2018, 10,000 of the repurchased shares were resold for $160,000. In its balance sheet dated December 31, 2018, Coy, Inc.'s treasury stock account shows a balance of:

• A) $0.
• B) $40,000.
• C) $100,000.
• D) $200,000.

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Definitions:

Equity

Fairness or justice in the way people are treated, or the ownership interest of shareholders in a company.

Efficiency

The optimal production and distribution of resources in a way that maximizes the net benefit to society or an economy.

Total Surplus

A measure of society's overall net advantage resulting from the consumption and production of a good or service, comprised of both consumer and producer surplus.

Fire Marshal

An official responsible for enforcing fire safety codes and regulations, as well as investigating fires to determine their cause.