Please Refer to the Following Information for Peartree Company

question 93

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 800 shares of treasury stock for $15 per share, which of the following statements would be TRUE?

• A) The total equity of the company would be unchanged.
• B) The total equity of the company would go up by $12,000.
• C) The total equity of the company would go down by $12,000.
• D) The total equity of the company would go down by $4,000.

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Definitions:

Medical Providers

Professionals involved in delivering healthcare services, such as doctors, nurses, and therapists.

Single-Person Households

Living arrangements in which an individual lives alone in a separate housing unit, reflecting certain social and economic trends.

Live In Poverty

To live in poverty means to exist below the economic threshold established by a government or organization, often leading to inadequate access to basic needs such as food, shelter, and education.