Mountain View Co

question 40

Multiple Choice

Mountain View Co.buys back 3,000 shares of its $10 par value common stock from investors at $126 per share.This stock repurchase would be recorded with a debit to:

• A)Cash and a credit to Treasury Stock for $378,000.
• B)Treasury Stock and a credit to Cash for $30,000.
• C)Treasury Stock and a credit to Cash for $378,000.
• D)Treasury Stock for $30,000,a debit to Additional Paid-in Capital for $348,000,and a credit to Cash for $378,000.

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Definitions:

Start Capacitor

A temporary capacitor that increases the starting torque of a motor by introducing a leading current to the auxiliary winding.

Auxiliary Winding

A secondary winding in a motor or transformer used to provide additional electrical pathways or support the main winding.

Locked-Rotor Starting

A method of starting electric motors where the rotor is prevented from turning initially, causing high starting torque and current.

Induction Motor

An electric motor that operates by inducing an electromagnetic field in the rotor, rather than through direct electrical connection.