A Corporation Originally Issued $8 Par Value Stock for $9

question 121

Multiple Choice

A corporation originally issued $8 par value stock for $9 per share. It purchased the stock for $10 per share for the treasury. Which of the following would be included in the entry to record the reissue of 20 shares of treasury stock for $11 per share?

• A) Paid-in capital from treasury stock transactions is credited for $220.
• B) Treasury stock is credited for $200.
• C) Treasury stock is credited for $220.
• D) Paid-in capital from treasury stock transactions is credited for $200.

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Definitions:

EOQ

Economic Order Quantity, an inventory management technique that determines the ideal order size to minimize total inventory costs including holding and ordering costs.

Carrying Cost

The total cost of holding a specific inventory, including storage, insurance, taxes, and opportunity costs, over a certain period.

Restocking Costs

Restocking costs are expenses associated with replenishing inventory, including purchasing, shipping, handling, and storage costs.

Carrying Cost

The total cost of holding a particular inventory, including storage, insurance, depreciation, and opportunity costs.