CityScape Company Repurchased 10,000 Shares of Its Own $5 Par

question 176

Multiple Choice

CityScape Company repurchased 10,000 shares of its own $5 par value common stock for $10 per share. The company later reissued 5,000 shares for $15 per share. These transactions resulted in a:

• A)$100,000 increase in paid-in capital.
• B)$25,000 increase in paid-in capital.
• C)$25,000 gain on the sale of treasury stock.
• D)$100,000 gain on the sale of treasury stock.

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Definitions:

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A large, influential financial institution capable of exerting significant impact on the national or global economy.

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