The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10...

jastukudYb

jastukudYb

Answered

2022-11-26

The following data has been collected about Keller Company's stockholders' equity accounts: Common stock $10 par value 20,000 shares authorized and 10,000 shares issued, 9,000 shares outstanding $100,000 Paid-in capital in excess of par value, common stock 50,000 Retained earnings 25,000 Treasury stock 11,500 Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
$10.50.
$10.00.
$11.50.
$1.15.
$1.28.

Answer & Explanation

Zaria Tanner

Zaria Tanner

Expert

2022-11-27Added 5 answers

The shares outstanding are 9000 shares, while shares issued are 10000 shares.
This means that 1000 shares are brought back as Treasury Stock.
The Value of treasury Stock = $11500
Hence, the cost per share of the treasury Stock = $ 11500 1000 shares = $11.5 [Option-3]

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