Treasury shares are a shares held as an investment by the treasurer of the

Treasury shares are a shares held as an investment by

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37.Treasury shares are a.shares held as an investment by the treasurer of the corporation.b.shares held as an investment of the corporation.c.issued and outstanding shares.d.issued but not outstanding shares. 38.When treasury stock is purchased for more than the par value of the stock and the cost method is used to account for treasury stock, what account(s) should be debited? 15 - 10
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Stockholders’ Equity 39.“Gains" on sales of treasury stock (using the cost method) should be credited to 40.Porter Corp. purchased its own par value stock on January 1, 2012 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from 41.How should a "gain" from the sale of treasury stock be reflected when using the cost method of recording treasury stock transactions? a.As ordinary earnings shown on the income statement.b.As paid-in capital from treasury stock transactions.c.As an increase in the amount shown for common stock.d.As an extraordinary item shown on the income statement. 42.Which of the following best describes a possible result of treasury stock transactions by a corporation? 43.Which of the following features of preferred stock makes the security more like debt than an equity instrument?
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