Use the Following Information to Answer the Question Below $\$ 20$

question 145

Multiple Choice

Use the following information to answer the question below. The following transactions involving Lupine Corporation occurred during the year:
Apr. 1 Purchased 2,000 shares of its own preferred stock for $\$ 20$ , the current market price. This is the first transaction involving its own stock engaged in by the company.

May 3 Sold 400 of the shares purchased on April 1 for $25 per share.
June 5 Retired 600 of the shares purchased on April 1. The original issue price was $\$ 10$ . The par value of the stock is $\$ 5$ .
The entry to record the April 1 transaction would be:

• A)
• \(\begin{array}{llr}
• \text {Cash } &40,000\\
• \text { Treasury Stock, Preferred } &&40,000\\
• \end{array}\)
• B)
• \(\begin{array}{l}
• \text { Retained Earnings }&40,000 \\
• \text { Cash }&&40,000
• \end{array}\)
• C)
• \(\begin{array}{llr}
• \text { Paid-in Capital, Preferred } & 40,000\\
• \text { Treasury Stock, Preferred } & & 40,000\\
• \end{array}\)
• D)
• \(\begin{array}{l}
• \text { Treasury Stock, Preferred } &40,000\\
• \text { Cash }&&40,000
• \end{array}\)

Understand the concepts of distress and eustress and their effects on performance.

Differentiate between challenge and hindrance stressors and their impacts on work dynamics.

Comprehend the differences and relationships between emotions and moods.

Gain knowledge on coping mechanisms and their applications to stress management.

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Definitions:

Proprietorships

A type of business entity that is owned and run by one individual and where there is no legal distinction between the owner and the business.

Income Tax Expense

The amount of money a company is obligated to pay in income taxes, based on its taxable income for a specific period.

Sales Revenue

Represents the total amount of money generated from the sale of goods or services by a company before any costs or expenses are deducted.

Operating Expenses

Regular costs for operating a business, including rent, utilities, payroll, and materials, but excluding costs associated with the production of goods sold.