2. Park Corp.'s stockholders' equity accounts on December 31, 20X8 were as follows: Common Stock, S20 par $8,000,000 Additional paid-in-capital 2,550,000 Retained Earnings 1,275,000 All shares of common stock outstanding on December 31, 20X8 were issued in 20X7 for $26 a share. On January 4, 20X9, Park reacquired 20,000 shares of its common stock at $24 a share and retired them. Immediately after the shares were retired, the balance in additional paid-in-capital would be Journal Entry a. $2,430,000 DR: b. $2,470,000 c. $2,510,000 d. $2,590,000 DR: 3. Treasury stock was acquired for cash at more than its par value, and then subsequently sold for cash at more than its acquisition price. Assuming that the Cost Method of accounting for treasury stock transactions is used, what is the effect of the subsequent sale of the treasury stock on each of the following? Additional Paid-in-Capital Retained Earnings a. Increase No Effect b. Increase Decrease c. Decrease Increase d. Decrease Decrease 4. In 20X8, Seda Corp. reacquired 6,000 shares of its $1 par value common stock at $36 per share. During 20X9, Seda reissued 3,000 of these shares at $50 per share. Seda uses the Cost Method to account for its treasury stock transactions. What accounts and amounts should Seda CREDIT in 20X9 to record the reissuance of the 3,000 shares? Treasury Stock Additional Paid-in-capital $102,000 144,000 42,000 Retained Earnings $42,000 Common Stock $6,000 6,000 $108,000 108,000 42,000 RECORD THE JOURNAL ENTRY FOR MC #4 ON THE NEXT PAGE! 4A. Record the reissuance of 3000 shares of Seda's Treasury Stock for $50 per share. 4B. When Treasury Stock is sold for more than its original cost is that income for the period? Explain: 4C. Can a company owning treasury stock receive a cash dividend on this stock? Explain