Please Refer to the Following Information for Peartree Company

question 61

True/False

Please refer to the following information for Peartree Company:
• Common stock, $1.00 par, 100,000 issued, 95,000 outstanding
• Paid-in capital in excess of par: $2,150,000
• Retained earnings: $910,000
• Treasury stock: 5,000 shares purchased at $20 per share
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If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, the total equity of the company will go up by $18,000.

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Definitions:

Ames Room

A distorted room that creates an optical illusion, making objects appear larger or smaller than they truly are.

Texture Gradient

A visual cue in perception that allows individuals to see the gradual change in the texture of objects as they move away, helping in depth perception.

Shape Constancy

The tendency to interpret the shape of an object as being constant, even when its shape changes on the retina.

Visual Angle

A measure of the size of an object's image on the retina, relative to the observer's distance from the object.