Homework SourseThe following data has been collected about Keller Companys
The following data has been collected about Keller Company\'s stockholders\' equity accounts:
Assuming the treasury shares were all purchased at the same price, the cost per share of the treasury stock is:
$1.15.
$1.28.
$11.50.
$10.50.
$10.00.
| 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 |
Solution
Solution: The correct answer is $11.50.
Treasury Shares = Issued Shares- Outstanding Shares
= 10,000-9,000
= 1,000
Cost per share of Treasury Stock = 11,500/1,000
= $11.50
Thus, the cost per share of the treasury stock is $11.50.
