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

question 86

Multiple Choice

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

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

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Definitions:

Monetary Policy

The process by which a central bank, currency board, or monetary authority controls the supply of money, or trading in foreign exchange markets.

Fiscal Policy

Government policy regarding taxation and spending to influence the economy.

Tax Cuts

Reductions in the tax rates or the amount of taxes owed, usually enacted to stimulate economic growth or to redistribute income more favorably.

Government Expenditures

The total amount of money spent by the government on various types of goods and services, including infrastructure, education, and defense.