Please Refer to the Following Information for Peartree Company

question 1

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 resold 1,000 shares of treasury stock for $24 per share, which of the following statements would be TRUE?

• A) Total equity of the company would remain unchanged.
• B) Total equity of the company would go up by $24,000.
• C) Total equity of the company would go down by $24,000.
• D) Total equity of the company would go up by $4,000.

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Definitions:

No Substitute

The assertion that certain elements or aspects cannot be replaced by alternatives without loss of value or function.

Member Skills

The abilities and expertise possessed by members of a group or team that contribute to its overall success.

Clear Role Expectations

Defined as the clarity and understanding of each team member's responsibilities and duties within an organization or project.

Team Membership

Involvement or belonging to a specific group working towards common goals.