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:

Orbit

The bony cavity containing the eyeball and its associated muscles, nerves, and blood vessels.

Acute Conjunctivitis

An infection or inflammation of the conjunctiva, often characterized by redness, itching, and watering of the eyes.

Dacryocystitis

An infection of the tear sac (dacryocyst) at the corner of the eye, leading to inflammation and often blockage of the tear duct.

Lacrimal Passage

A drainage system for tears from the eye into the nasal cavity, which includes the lacrimal ducts and sac.