In 2016, Winn, Inc

question 113

Multiple Choice

In 2016, Winn, Inc., issued $1 par common stock for $35 per share. No other common stock transactions occurred until July 31, 2018, when Winn acquired some of the issued shares for $30 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?

• A) 2018 net income is decreased.
• B) Additional paid-in capital is decreased.
• C) 2018 net income is increased.
• D) Retained earnings is increased.

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Definitions:

American Businesses

Refers to commercial enterprises based in the United States, encompassing a wide range of industries, from small businesses to multinational corporations.

Hawaii

A U.S. state located in the Pacific Ocean, approximately 2,000 miles from the U.S. mainland, known for its diverse natural scenery, warm tropical climate, and unique culture.

Frederick Jackson Turner

An American historian known for his "Frontier Thesis," which argued that the American democracy was profoundly shaped by the American frontier experience.

American Society

The social structure, cultural norms, and community life of the United States.