Ladder Distributors The stockholders' equity section of the December 31,2014,balance sheet is provided below:
Assume that all of the 20,000 shares of stock that was issued as of December 31,2014,was issued for $42 per share.On March 1,2015,the company reacquired 4,000 shares of its common stock for $50 per share.
-Refer to Ladder Distributors.Suppose the company reissued 1,000 shares of its treasury stock on June 1,2015,for $39 each.Which of the following is true regarding the entry required to record this transaction?
A) A debit to treasury stock is required for $50,000.
B) A credit to treasury stock is required for $39,000.
C) A debit to retained earnings is required for $11,000.
D) A debit to paid-in capital from treasury stock transactions is required for $3,000.
Correct Answer:
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