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

question 14

Multiple Choice

The following data has been collected about a company's stockholders' equity accounts:
$\begin{array}{|l|r|}\hline \text { Common stock } \$ 10 \text { par value } 20,000 \text { shares authorized and } 10,000 \text { shares issued } & \$ 100,000 \\\hline \text { Contributed capital in excess of par value, common stock } & 50,000 \\\hline \text { Retained earnings } & 25,000 \\\hline \text { Treasury stock, } 1,000 \text { shares } & 11,500\\\hline\end{array}$

The treasury shares were all purchased at the same price.The cost per share of the treasury stock is:

• A) $1.15
• B) $1.28
• C) $11.50
• D) $10.50
• E) $10.00

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Definitions:

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