Refer to the information above. If Clydesdale Corporation had reacquired the 8,000 shares of treasury stock early in 2010, what was the purchase price per share?

Question

Quizplus · Accepted Answer

The calculation for the purchase price per share of treasury stock is: 
Total cost of treasury stock / Number of shares reacquired

Total cost of treasury stock = Beginning balance + Purchases – Sales 
Total cost of treasury stock = $240,000 + $24,000 – $0 = $264,000

Number of shares reacquired = 8,000

Purchase price per share = $264,000 / 8,000 = $33 per share

Therefore, since the stock was reacquired in 2010, the purchase price per share was more than $24 per share. The only option that satisfies this criterion is option C.

Refer to the Information Above