Prior to June 1,a Company Has Never Had Any Treasury

question 129

Multiple Choice

Prior to June 1,a company has never had any treasury stock transactions.The company repurchased 100 shares of its common stock on June 1 for $5,000.On July 1,it reissued 50 of these shares at $52 per share.On August 1,it reissued the remaining treasury shares at $49 per share.What is the balance in the Contributed Capital,Treasury Stock,account on August 2?

• A)$5,050
• B)$2,600
• C)$100
• D)$50
• E)$0

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Definitions:

Document Outsourcing

The practice of hiring third-party vendors to manage document creation, management, and distribution needs of an organization.

Anne Mulcahy

Known for her role as the former CEO of Xerox Corporation, where she led significant turnaround efforts and innovation.

CEO

Chief Executive Officer, the highest-ranking individual in a company or organization, responsible for making major corporate decisions.

Xerox

A multinational corporation known for its expertise in print and digital document products and services.