Use the Following Information to Answer the Question Below

question 23

Multiple Choice

Use the following information to answer the question below. On January 1,2013,Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding.All 40,000 shares had been issued in a prior period at $17 per share.On February 1,2013,Falcon purchased 6,100 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2,2013.
What amount of gain due to these treasury stock transactions should be reported on the income statement for the year ended December 31,2013?

• A) $0
• B) $42,700
• C) $6,100
• D) $4,270

---

Definitions:

Money Supply

The aggregate of all money, such as cash, deposits in banks, and liquid assets, that is present within an economy at a certain point in time.

Real GDP

Gross Domestic Product (GDP) adjusted for inflation, measuring the value of goods and services produced by a country in a year, expressed in real terms.

Average Price Level

The average price level refers to the general level of prices for goods and services in an economy over a given period, often used as an indicator of inflation.

Monetary Policy

The process by which the central bank or monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure economic stability and growth.