Land Corporation Reported the Following Which of the Following Is Included in the Entry to r

question 13

Multiple Choice

Land Corporation reported the following: $$\begin{array} { | l | r | } \hline \text { Common Stock, } \$ 5 \text { par, } 211,000 \text { shares authorized, } 165,000 \text { shares issued } & \$ 825,000 \\\hline \text { Paid in Capital in Excess of Par - Common } & 217,000 \\\hline \text { Retained Earnings } & 207,000 \\\hline \text { Total Stockholders' Equity } & \$ 1,249,000 \\\hline\end{array}$$ Which of the following is included in the entry to record the corporation's purchase of 40,000 shares of its common stock for $12.00 per share?

• A) Treasury Stock-Common is debited for $480,000.
• B) Paid-In Capital from Treasury Stock Transactions is credited for $135,000.
• C) Retained Earnings is debited for $480,000.
• D) Common Stock-$5 Par Value is credited for $200,000.

---

Definitions:

Break-even Point

The break-even point is the level of production or sales at which total revenues equal total costs, resulting in no net profit or loss.

Variable Cost

A variable cost changes in proportion to the level of production or business activity, such as raw materials or direct labor expenses.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Target Profit

The financial goal for the profit a company aims to achieve within a specific period.