Please Refer to the Following Information for Peartree Company

question 4

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 Treasury stock account would go down by $12,000.
• B) The Paid-in capital account would go up by $4,000.
• C) The Treasury stock account would go down by $16,000.
• D) The Retained earnings account would go up by $4.000.

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Definitions:

Companies Compete

The state in which businesses are in active pursuit of gaining an advantage or superiority over others in the same industry or market.

Dependent Contractors

Dependent contractors are workers who, although operating independently from their clients, have a significant portion of their income or work coming from a single client, potentially giving the client some level of control or dependence.

Competitive Advantage

A significant edge a company has over its competitors, allowing it to generate greater sales or margins and/or retain more customers.

Fast-Growth Companies

Businesses characterized by rapid expansion in revenue, size, or market share over a short period.