Victor Corporation was organized on January 2 with 100,000 authorized shares of $10 par value common stock. During the year, Victor had the following capital transactions:

Victor used the par value method to record the purchase of the treasury shares.
What would be the balance in the paid-in capital from treasury stock account at December 31?

Question

Victor Corporation was organized on January 2 with 100,000 authorized shares of $10 par value common stock. During the year, Victor had the following capital transactions:

Victor used the par value method to record the purchase of the treasury shares.
What would be the balance in the paid-in capital from treasury stock account at December 31?

Quizplus · Accepted Answer

The balance in the paid-in capital from treasury stock account at December 31 would be equal to the excess of cost over par value of the treasury shares sold during the year ($15,000). Therefore, the correct answer is C.

Victor Corporation Was Organized on January 2 with 100,000 Authorized