Asked by
Jasmine Dutra
on Nov 18, 2024Verified
A corporation purchased 1,000 shares of its own $5 par common stock at $10 and subsequently sold 500 of the shares at $20. What is the amount of revenue realized from the sale?
A) $0
B) $5,000
C) $2,500
D) $10,000
Common Stock
Shares representing ownership in a company, giving holders voting rights and a share in the company's profits via dividends.
Revenue Realized
Income that a company has earned and received payment for, typically from sales of goods or services.
Sale Price
The amount of money for which a product or service is sold to the consumer.
- Ascertain the effects of treasury stock operations on stockholders' equity.
Verified Answer
KF
Learning Objectives
- Ascertain the effects of treasury stock operations on stockholders' equity.