On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On September 30, 2020, Star Corp. acquired 500 shares of its common stock at $15 per share. What amount is debited to Common Stock (a) under the treasury stock method and (b) under a direct stock retirement? Select one: a. Treasury Stock Method Direct Retirement $1,000 $1,000 b. Treasury Stock Method Direct Retirement $0 $1,000 c. Treasury Stock Method Direct Retirement $0 $9,000 d. Treasury Stock Method Direct Retirement $1,000 $0

On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On September 30, 2020, Star Corp. acquired 500 shares of its common stock at $15 per share. What amount is debited to Common Stock (a) under the treasury stock method and (b) under a direct stock retirement? Select one: a. Treasury Stock Method Direct Retirement $1,000 $1,000 b. Treasury Stock Method Direct Retirement $0 $1,000 c. Treasury Stock Method Direct Retirement $0 $9,000 d. Treasury Stock Method Direct Retirement $1,000 $0

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 10MC

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Treasury Stock Method	Direct Retirement
$1,000	$1,000

Treasury Stock Method	Direct Retirement
$0	$1,000

Treasury Stock Method	Direct Retirement
$0	$9,000

Treasury Stock Method	Direct Retirement
$1,000	$0

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