Chapter 13, Problem 13.16EX

(a)

To determine

Treasury Stock: It refers to the shares that are reacquired by the corporation that are already issued to the stockholders, but reacquisition does not signify retirement.

To prepare: The journal entries for the purchase and sales of treasury stock.

B.

To determine

The balance in paid in capital from sale of treasury stock on December 31 of the current year.

c.

To determine

The location where the balance in paid in capital from sale of treasury stock be reported on the balance sheet.

d.

To determine

To discuss: The reason, for which Incorporation B has purchased the treasury stock.