The Following Data Has Been Collected About Keller Company's Stockholders

question 215

Multiple Choice

The following data has been collected about Keller Company's stockholders' equity accounts:
$\begin{array}{ll}\text {Common stock \( \$ 10 \) par value 20,000 shares }&\$100,000\\\text {authorized and 10,000 shares issued, 9,000 shares outstanding}&0\\\text { Paid-in capital in excess of par value, common stock } & 50,000 \\\text { Retained earnings } & 25,000 \\\text { Treasury stock } & 11,500\end{array}$


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Assuming the treasury shares were all purchased at the same price,the number of shares of treasury stock is:

• A) 1,150.
• B) 1,000.
• C) 575.
• D) 11,000.
• E) 21,000.

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Definitions:

Variable Inputs

Resources or inputs whose quantity can be changed in the short term to adjust the level of production.

Long-run Average Total Cost

A curve that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales, such as rent or salaries.

Specialization

A production strategy where individuals, regions, or nations focus on the production of a limited scope of goods or services to gain greater efficiency and productivity.