The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $102,000 Reduce retained earnings by $68,000 Reduce retained earnings by $102,000 Increase total shareholders' equity by $370,000
The 2022 sale of half of the treasury stock would: Multiple Choice Reduce income before tax by $102,000 Reduce retained earnings by $68,000 Reduce retained earnings by $102,000 Increase total shareholders' equity by $370,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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20. As of December 31, 2021, Halliburton Co. reported the following:
| Cash dividends payable | $ | 34,000 | |
| 740,000 | |||
| Paid-in capital—share repurchase | 34,000 | ||
| Common stock and other paid-in capital accounts | 5,400,000 | ||
| 4,400,000 | |||
During 2022, half of the treasury stock was resold for $268,000; net income was $740,000; cash dividends declared were $1,640,000; and stock dividends declared were $640,000.
The 2022 sale of half of the treasury stock would:
Multiple Choice
-
Reduce income before tax by $102,000
-
Reduce retained earnings by $68,000
-
Reduce retained earnings by $102,000
-
Increase total shareholders' equity by $370,000
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