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

question 66

Multiple Choice

The following data has been collected about a company's shareholders' equity accounts: Share Capital - Ordinary $10 par value 20,000 shares
Authorized and 10,000 shares issued, 1,000 shares in
Treasury……………………………………………………… $100,000
Share Premium - Ordinary………………………………………..... 50,000
Retained earnings…………………………………………………… 25,000
Treasury shares……………………………………………………… 11,500
The treasury shares were all purchased at the same price.
The cost per share of the treasury shares is:

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

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Definitions:

Fixed Costs

Financial obligations that do not fluctuate with changes in production levels or sales numbers, like rent, salary payments, and insurance premiums.

Direct Labor

This refers to the wages paid to employees who are directly involved in the production of goods or services.

Automation

The use of technology to perform tasks without human intervention, often leading to increased efficiency and accuracy.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production.