Refer to the information above. If Brookdale Corporation had reacquired 7,000 shares of treasury stock early in 2010, and this was the company's only treasury stock transaction, then some treasury stock must have been sold during 2010 for:

Question

Quizplus · Accepted Answer

The number of outstanding shares at the beginning of 2010 would have been: 120,000 – 7,000 = 113,000. If the number of shares outstanding at the end of the year was still 120,000, then the company must have sold 7,000 shares during the year. The total amount of treasury stock sold during the year would be:

7,000 shares × $38 per share = $266,000

Therefore, choice B is the correct answer.

Refer to the Information Above