Ask Question
14 October, 15:46

Pember Corporation started business in 2007 by issuing 200,000 shares of $20 par common stock for $36 each. In 2012, 30,000 of these shares were purchased for $52 per share by Pember Corporation and held as treasury stock. On June 15, 2013, these 30,000 shares were exchanged for a piece of property that had an assessed value of $810,000. Perber's stock is actively traded and had a market price of $60 on June 15, 2013. The cost method is used to account for treasury stock. The amount of paid-in capital from treasury stock transactions resulting from the above events would be

a. $1,200,000. b. $720,000. c. $585,000. d. $240,000.

+4
Answers (1)
  1. 14 October, 18:20
    0
    d. $240,000.

    Explanation:

    The computation of the amount of paid-in capital from treasury stock is calculated by applying the formula which is shown below:

    = Number of shares * (Market price per share - purchase price per share)

    = 30,000 shares * ($60 per share - $52 per share)

    = 30,000 * $8 per share

    = $240,000

    The other items which are mentioned in the question are irrelevant. Therefore, it is not to be considered in the computation part.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Pember Corporation started business in 2007 by issuing 200,000 shares of $20 par common stock for $36 each. In 2012, 30,000 of these shares ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers