If Caesar Corporation had reacquired 7,000 shares of treasury stock early in 2018,then some treasury stock must have been sold during 2018 for:

Question

Quizplus · Accepted Answer

Since the question states that Caesar Corporation reacquired 7,000 shares of treasury stock, this means that these shares were previously sold as treasury stock. Therefore, the treasury stock must have been sold at some point during 2018. The cost of the treasury stock purchase of $84,000 can be divided by the number of shares reacquired (7,000) to determine the cost per share. This calculation results in a cost per share of $12.00, which is the same as the selling price per share for the treasury stock sold during 2018. Therefore, the best choice is B, $12.00 per share.

If Caesar Corporation Had Reacquired 7,000 Shares of Treasury Stock