Assume That All Remaining Treasury Stock Is Reissued at a Price

question 92

Multiple Choice

Assume that all remaining treasury stock is reissued at a price of $14 per share in January of 2019.What amount should be credited to the account Additional Paid-In Capital: Treasury Stock Transactions in the journal entry to record this transaction?

• A)$14,000
• B)$30,000
• C)$40,000
• D)$70,000

---

Definitions:

Impairment Losses

Financial accounting losses recognized when the carrying amount of an asset exceeds its recoverable amount, indicating the asset has suffered a decline in value.

Shareholders

Individuals or entities that own shares in a company, giving them ownership stakes and certain rights regarding its operation.

Parent Entity

A company that holds a controlling interest in another company or subsidiary, having significant influence over its operations and financial decisions.

Total Profits

signifies the entire sum of earnings or profits generated by a business before deducting any expenses.