Question

Q6.

Required information [The following information applies to the questions displayed below.) The equity sections from Atticus Group's 2016 and 2017 year-end balance sheets follovw t 4 of 5 Stockholders' Equity (December 31, 2016) Common stock-$5 par value, 100,000 shares ts authorized, 40,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity $ 200,000 160,000 340,000 700,000 eBook Ask Print Stockholders' Equity (December 31, 2017) Common stock-$5 par value, 100,e80 shares eferences authorized, 47,400 shares issued, 3,000 shares in treasury Paid-in capital in excess of par value, common stock Retained earnings ($5e,000 restricted by treasury stock) $237,000 211,800 426,000 868, 800 (50,000) $818,800 Less cost of treasury stock Total stockholders' equity The following transactions and events affected its equity during year 2017 3an. 5 Declared a $e.50 per share cash dividend, date of record January 10. Mar. 20 Purchased treasury stock for cash. Apr 5 declared a se.5e per share cash dividend, date of record April 10. Duly 5 Declared a $0.50 per share cash dividend, date of record July 10. July 31 Declared a 28% stock dividend when the stock's market value was $12 per share. KPre6 of 7 Next> Mc

Answer 1

Solution 4:

Total nos of shares in treasury stock = 3000 shares

Cost of treasury stock = $50,000

Per share cost of the treasury stock purchased = $50,000 / 3000 = $16.67 per share