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Athens, Inc., has 9,000 shares of common stock outstanding and the following data has been
collected:
Common stock, $10 par value, 20,000 shares authorized and 10,000 issued..........$100,000
Contributed capital in excess of pay value, common stock.... $50,000
Retained earnings........$25,000
Treasury stock...........411,500
The cost per share of the treasury stock is:
A $1.15
B $11.50
C $1.28
D $10.50
Solution
Ans B $ 11.50
Details Amount
No Of treasury Stock(No of issued stock-Outstanding stock) 10000-9000
1,000.00
Book value of treasury stock 11,500.00
Cost per Treasury stock 11500/1000
11.50
Athens- Inc-- has 9-000 shares of common stock outstanding and the fol.docx

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Athens- Inc-- has 9-000 shares of common stock outstanding and the fol.docx

  • 1. Athens, Inc., has 9,000 shares of common stock outstanding and the following data has been collected: Common stock, $10 par value, 20,000 shares authorized and 10,000 issued..........$100,000 Contributed capital in excess of pay value, common stock.... $50,000 Retained earnings........$25,000 Treasury stock...........411,500 The cost per share of the treasury stock is: A $1.15 B $11.50 C $1.28 D $10.50 Solution Ans B $ 11.50 Details Amount No Of treasury Stock(No of issued stock-Outstanding stock) 10000-9000 1,000.00 Book value of treasury stock 11,500.00 Cost per Treasury stock 11500/1000 11.50