Please Refer to the Following Information for Peartree Company

question 111

Multiple Choice

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, which of the following statements would be TRUE?

• A) The Treasury stock account would go down by $18,000.
• B) The Paid-in capital account would not be affected.
• C) The Retained earnings account would go down by $2,000.
• D) The Paid-in capital account would go down by $2,000.

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Definitions:

Waking Performance

The efficiency and effectiveness of cognitive, physical, and emotional functions during wakefulness.

Emotionally Unstable

A condition characterized by rapid, often extreme fluctuations in mood.

REM

Rapid Eye Movement sleep, a phase of sleep characterized by fast and random movement of the eyes, associated with vivid dreaming.

Brain Wave Pattern

The electrical activity in the brain, characterized by different frequencies and amplitudes, which can indicate states of consciousness, sleep, or alertness.