The Following Amounts Were Reported by Ebert Corporation on December

question 103

Short Answer

The following amounts were reported by Ebert Corporation on December 31,2009:
$\begin{array}{lr}\text { Common stock- } \$ 5 \text { par value } & \$ 150,000 \\\text { Additional paid-in capital } & 120,000 \\\text { Treasury stock }(8,000 \text { shares at cost }) & 60,000\end{array}$
On January 3,2010,5,000 shares of treasury stock were sold.After the sale of the treasury shares,total stockholders' equity amounted to $277,500.No stockholders' equity transactions other than the sale of the treasury stock occurred between December 31,2009,and January 3,2010.From the information given,compute the selling price per share of the treasury stock.

---

Definitions:

Goodwill

An intangible asset representing the excess of the purchase price over the fair market value of an acquired company's identifiable net assets, reflecting the value of its brand, customer relationships, and other non-physical assets.

Fair Value

The amount one would expect to obtain from selling an asset or the cost to transfer a liability in a smooth transaction among market players as of the valuation date.

Tax Rate

The percentage at which an individual or corporation is taxed by the government.