[The Following Information Applies to the Questions Displayed Below

question 80

Multiple Choice

[The following information applies to the questions displayed below.]
On April 1,2018,Jetter Corporation reacquired 2,000 shares of its own $10 par stock for $120,000 cash.On October 15,2018,600 of the treasury shares were reissued at a price of $65 per share.
-The reacquisition of the 2,000 shares on April 1,2018,causes:

• A)No change in total assets of Jetter Corporation.
• B)No change in the number of shares of Jetter Corporation stock outstanding.
• C)A reduction in total assets and in total stockholders' equity of Jetter Corporation.
• D)Jetter Corporation to show a new asset,"Treasury Stock",for $120,000.

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Definitions:

Capital Gains

The profit earned from the sale of an asset or investment that has increased in value.

Total Assets

The sum of all assets owned by a company, including current, non-current, tangible, and intangible assets.

Net Working Capital

A financial measure that illustrates the gap between the current resources of a business and its short-term obligations.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities.