On April 16,2018,Rodriguez Corporation Reacquired 12,000 Shares of Its Own

question 6

Multiple Choice

On April 16,2018,Rodriguez Corporation reacquired 12,000 shares of its own $10 par stock for $660,000 cash.On November 4,2019,1,000 of the treasury shares were reissued at a price of $65 per share.The journal entry to record the reissuance of the 1,000 shares of stock on November 4 includes a:

• A)Credit to Common Stock of $10,000.
• B)Credit to Additional Paid-In Capital: Treasury Stock Transactions of $10,000.
• C)Credit to Gain on Treasury Stock Transactions of $10,000.
• D)Credit to Treasury Stock Reissued of $65,000.

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Definitions:

Induced Consumption

The concept that the level of consumer spending increases as disposable income rises, and decreases as disposable income falls, all else being constant.

Induced Consumption

Induced consumption is the portion of consumer spending that increases with an increase in disposable income.

Disposable Income

The finance available to households for expenditures and saving after reducing income taxes.

Disposable Income

Money that households can earmark for spending and saving after income taxes are considered.