19pershare c bookvaluepershare 718750shares

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a total of $2,500,000. This $2,500,000 was allocated between the accounts Common Stock and Additional Paid­in Capital, Common Stock. Under the cost method of accounting for treasury stock, acquiring treasury stock does not cause the amount recorded for the initial issue of common stock to be adjusted. The treasury stock is simply recorded at the value of the assets given up. So if the value of the assets given up to acquire the treasury stock exceeds the value of the assets received when the common stock was initially issued, then the Treasury Stock balance will exceed contributed capital. E12–8 a. Book Value per Share = Common Stockholders' Equity ÷ Common Shares Outstanding = $7,187 ÷ 735 Shares = $9.78 per Share b. Book Value per Share = [$7,187 + (50 Shares $32)] ÷ 785 Shares = $11.19 per Share c. Book Value per Share = [$7,187 + (50 Shares $20)] ÷ 785 Shares = $10.43 per Share d. Book Value per Share = [$7,187 – (50 Shares $32)] ÷ 685 Shares = $8.16 per Share e. Book Value per Share = [$7,187 – (50 Shares $...
View Full Document

This homework help was uploaded on 03/03/2014 for the course ACCT 5053 taught by Professor Staff during the Fall '08 term at Oklahoma State.

Ask a homework question - tutors are online