HiTech Industries Reacquired 10,000 Shares of Its $26-Par Common Stock

question 153

Multiple Choice

HiTech Industries reacquired 10,000 shares of its $26-par common stock for $70/share. The debit to Treasury Stock will be:

• A)based on the last treasury stock transaction.
• B)$440,000.
• C)$260,000.
• D)$700,000.

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Definitions:

Industrial Regulation

Regulatory policies and procedures designed to control or supervise industries with the goal of promoting fair competition, reducing monopoly power, and protecting consumer interests.

Fair Return Price

A fair return price is a price level set for a product or service that allows a company to cover its costs while earning a reasonable profit, often discussed in the context of regulated industries.

Herfindahl Index

A measure used to calculate the level of concentration in a market, indicating the competitiveness of the market.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in that market.