In 2007, Winn, Inc

question 46

Multiple Choice

In 2007, Winn, Inc. issued $1 par value common stock for $35 per share. No other common stock transactions occurred until July 31, 2009, when Winn acquired some of the issued shares for $30 per share and retired them. Which of the following statements correctly states an effect of this acquisition and retirement?

• A)2009 net income is decreased.
• B)Additional paid-in capital is decreased.
• C)2009 net income is increased.
• D)Retained earnings is increased.The entries to record the stock issuance and subsequent acquisition and retirement (per share) are as follows:
• The net result is a decrease in additional paid-in capital of $29 per share retired.

---

Definitions:

Actor-Observer Difference

A tendency to attribute one's own actions to situational factors while attributing others' actions to their dispositions.

Similar-To-Me Effect

A bias where individuals are more favorable towards others who they perceive as similar to themselves in some manner.

The Halo Effect

The halo effect is a cognitive bias where the perception of one positive trait influences the perception of other traits of an individual or object.

Social Information Processing

Involves how individuals perceive, interpret, and respond to social information in their environment, affecting their social interactions and outcomes.