A Company Reissues 400 Shares of Its Own Common Stock

question 134

Multiple Choice

A company reissues 400 shares of its own common stock for $20 per share.The company had acquired these shares two months before for $15 per share.The reissuance of this stock would be recorded with a:

• A)Credit to Treasury Stock for $8,000
• B)Debit to Additional Paid-In Capital for $2,000
• C)Debit to Common Stock for $8,000
• D)Credit to Additional Paid-In Capital for $2,000

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Definitions:

Existential Guilt

A condition arising from feeling responsible for not fully utilizing one's freedom to choose or for not living authentically according to one's values and potential.

Inauthenticity

The state or quality of not being genuine or true to one's own personality, spirit, or character.

Perceived Social Norms

Individuals' beliefs about the behaviors and attitudes that are considered acceptable or typical within their social group or society.

Authenticity

The quality of being genuine, true to oneself, and honest in one’s feelings, values, and beliefs.