90000 commonstockse 30000 additionalpaidin 60000

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Unformatted text preview: A) 110,000 Purchased treasury stock. Average Repurchase Price = Total Repurchase Price ÷ Number of Shares Held in Treasury = $110,000 ÷ 5,000 Shares Held in Treasury = $22.00 per Share P12–10 Concluded d. Book value equals total common stockholders' equity divided by the total number of common shares outstanding. To determine total common stockholders' equity prior to the acquisition of the treasury stock, the value of the 5,000 shares of treasury stock must be added back to total stockholders' equity, and the 5,000 shares of treasury stock must be considered to be outstanding. Thus, prior to the acquisition of the treasury stock, the book value of outstanding common shares was: Total Common Stockholders Equity ÷ Number of Common Shares Outstanding = [(Total Stockholders' Equity + Treasury Stock) – Preferred Stock – Additional Paid­In Capital, Preferred Stock] ÷ Number of Common Shares Outstanding = ($2,180,000 + $110,000) – $200,000 – $150,000) ÷ 90,000 Shares = $21.56 per Share After the repurchase of the...
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