On January 1,2017,Automatic Train Corporation Had 30,000 Common Shares Outstanding

question 96

Multiple Choice

On January 1,2017,Automatic Train Corporation had 30,000 common shares outstanding issued at $10 each.On June 1,2017,Automatic Train Corporation issued 12,000 shares of its common shares at $15 per share.On November 30,2017,Automatic Train Corporation repurchased 3,000 shares of its common shares for $17 per share.The balance in Common shares on December 31,2017,as shown on the statement of shareholders' equity,is:

• A) $429,000
• B) $445,200
• C) $445,714
• D) $480,000

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Definitions:

Socialize Losses

The process where financial losses are distributed broadly across society or a large group, rather than being borne solely by the entity responsible for incurring them.

Imprudent Investment

Financial allocations or commitments made without proper judgment or care, often leading to significant losses or suboptimal financial performance.

Public Choice Theory

An economic theory that studies how public sector decisions are made, considering individuals in the public sector as self-interested agents and applying the tools of economics to political science.

Government Decision Making

The process by which governments choose between different policies, actions, or strategies to address specific public issues or problems.