Caesar & Company reacquired 60,000 shares of its $1 par common stock for $10 per share on March 1. On April 1 they sold 10,000 treasury shares for $15 per share. On May 1 they sold 7,000 treasury shares for $6 per share. Assuming no prior balance in the Additional Paid-in Capital from Treasury Stock Transactions, what is the ending balance in this account following these transactions?

Question

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The company initially reacquired shares at $10 each. Selling 10,000 shares at $15 each results in a $5 gain per share, totaling $50,000. Selling 7,000 shares at $6 each results in a $4 loss per share, totaling $28,000. The net effect is a $22,000 credit to Additional Paid-in Capital from Treasury Stock Transactions.

Caesar & Company Reacquired 60,000 Shares of Its $1 Par