Please Refer to the Following Information for Petra Sales Company

question 106

True/False

Please refer to the following information for Petra Sales Company:
• Common stock, $1.00 par, 200,000 issued, 180,000 outstanding
• Paid-in capital in excess of par: $1,600,000
• Retained earnings: $2,440,000
• Treasury stock: 20,000 shares purchased at $12 per share
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If Petra Sales sells 10,000 shares of treasury stock at $14 per share, the company will record a gain on the sale of treasury stock of $20,000.

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Definitions:

Higher-order Conditioning

A conditioning process in which a stimulus that's already associated with a reflex becomes associated with a new, neutral stimulus.

Dishabituation

A process in which a previously habituated response reoccurs, typically after the presentation of a novel stimulus.

Sensitization

An increased reaction to a stimulus following repeated exposures, leading to a heightened response.

Habituation

The process where an organism becomes less responsive to a stimulus after repeated exposure.