In 2018, Brock Lee Vegetables, Issued $1 Par Value Common

question 119

Multiple Choice

In 2018, Brock Lee Vegetables, issued $1 par value common stock for $30 per share. No other common stock transactions occurred until March 31, 2020, when Brock Lee acquired some of the issued shares for $25 per share and retired them. Which of the following statements is true for this acquisition and retirement?

• A) 2020 net income is decreased.
• B) 2020 net income is increased.
• C) Additional paid-in capital is increased.
• D) Retained earnings is increased.

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Definitions:

Bank Strategy

The approach taken by a bank to achieve its business objectives, including market expansion, customer service improvement, and risk management.

Rapid Retirement

involves a swift transition of employees from active work to retirement, often accelerated by incentives or organizational restructuring.

Employment Levels

The quantity and types of jobs available within an organization or economy, often used to measure economic health or organizational size.

Labour Costs

The total expense incurred by an employer for the salaries, wages, and benefits of its employees.