A Corporation Originally Issued $8 Par Value Common Stock for $9

question 148

Multiple Choice

A corporation originally issued $8 par value common stock for $9 per share. It purchased the stock for $10 per share for the treasury. Which of the following would be included in the entry to record the reissue of 20 shares of treasury stock for $11 per share?

• A)Paid-In Capital from Treasury Stock Transactions is credited for $220.
• B)Treasury Stock-Common is credited for $200.
• C)Treasury Stock-Common is credited for $220.
• D)Paid-In Capital from Treasury Stock Transactions is debited for $20.

---

Definitions:

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, disproportionately affecting lower-income earners.

Progressive Taxation

The tax as a percentage of income increases as income increases.

Proportional Taxation

The tax as a percentage of income remains constant as income increases; also called a flat tax.

Regressive Taxation

The tax as a percentage of income decreases as income increases.