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:

Inverse Relationship

A situation where two variables move in opposite directions, meaning when one variable increases, the other decreases.

Active Macroeconomic Policy

Economic strategies implemented by the government or central bank to stabilize the economy by adjusting spending, taxes, and interest rates.

Expansionary Gap

A situation where the actual output in an economy is greater than the potential output due to high demand.

Nominal Wages

The amount of money an employee is paid before adjustments for inflation, reflecting the current value of money.