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If a Company Issues 2,000 Shares for $55 and Then

question 35

Multiple Choice

If a company issues 2,000 shares for $55 and then repurchases 50 shares at $50 and subsequently purchases another 50 shares at $60 each, how much is in the account "contributed surplus on retirement of shares"?


Definitions:

Installment Payment Plan

A financial arrangement that allows a buyer to pay for goods or services over a period of time in several smaller payments.

Bankruptcy

The state of being bankrupt, being legally declared unable to pay debts; a petition to a court by an individual who is stating that he or she cannot pay any debt incurred.

Collection Agency Transaction

A financial activity where a collection agency attempts to recover funds owed by an individual or business.

Outsourcing

An arrangement by which a task, operation, or job that could be performed by employees within a company is instead contracted to another company; generally viewed as contracting out a specific business function to another company rather than having your own company manage that specific work.

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