Use the Following Information to Answer the Question Below

question 111

Multiple Choice

Use the following information to answer the question below. On January 1,20x5,Falcon Corporation had 40,000 shares of $10 par value common stock issued and outstanding.All 40,000 shares had been issued in a prior period at $17 per share.On February 1,20x5,Falcon purchased 3,100 shares of treasury stock for $19 per share and later sold the treasury shares for $26 per share on March 2,20x5.
-What amount of gain due to these treasury stock transactions should be reported on the income statement for the year ended December 31,20x5 ?

• A)$0
• B)$21,700
• C)$3,100
• D)$2,170

---

Definitions:

Securities Sale

The process of selling financial instruments such as stocks, bonds, or options in a financial market.

Corporate Nature

The inherent characteristics that define a corporation, such as limited liability, perpetual existence, and the ability to enter into contracts.

Letters Patent Corporations

Official government documents that grant a corporation the rights and privileges to operate as a legal entity.

Public Identification

The process of disclosing or making known the identity of a person or entity in a public context.