At December 31, Year 3, Rama Corp. had 20,000 shares of $1 per value treasury stock that had been acquired in year 3 at $12 per share. In may Year 4, Rama issued 15,000 of these treasury shares at $10 per share. The cost method is used to record treasury stock trans actions. Rama is located in a state where laws relating to acquisition of treasury stock restrict the availability of retained earning for declaration of dividends. At December 31, year 4, what amount should Rama show in note to financial statements as a restriction of retained earnings as a result of its treasury stock transactions? $ 5,000 $ 10, 000 $ 60,000 $90,000 Cyan Corp. issued 20,000 shares of $5 per common stock at $10 per share. On December 31, Year 3, Cyan's retained earnings were $ 300,000. In march year 4, cyan reacquired 5,000 shares of its common stock at $ 20 per share. In June Year 4, Cyan sold 1,000 of these shares to its corporate officers for $25 per share. Cyan uses the cost method to record treasury stock, Net income for the year ended December 31, Year 4 was $80,000. At December 31. Year 4, what amount should Cyan report as retained earnings? A. $360,000 B.$365,000 C. $375,000 D.$380,000 At its data of incorporation, Glean, Inc, issued 100,000 shares of its $10 per common stock at $ 11 per share. During the current year. Glean acquired 30,000 shares of its common stock at a price of $ 10 per share and accounted for them by the cost method subsequently, these shares were reissued at a price of $ 12 per share. Glean had made no other issuances or acquislitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? 30. During the current year, onal co. purchased 10,000 shares of its own stock at $7 per share. The stock was originally issued at $ 6. The firm sold 5,000 of the treasury shares for $10 per share. The firm uses the cost method to account for treasury stock. What amount shaould onal report its income statement for these transactions? A. $0 B. $5,000 gain.; C. $10,000 loss D.$15,000 gain. If a corporation sells some of its treasury stock at a price that exceeds its cost, this excess should be A. Reported as a gain in the income statement. B. Treated as a reduction in the carrying amount of remaining treasury stock. C. Credited to additional paid-in capital. D. Credited to retained earnings. In year 2, Fogg, inc, issued $10 per value common stock for $25 per share. no other common stock transactions occured until March 31, Year 4, When Fogg acuired some of the issued shares for $20 per share and redired them. Which of the following statements accurately states an effect of this acquisition and refirement? Year 4 net income is decreased. Year 4 net income is increased. Additional paid-in capital is decreassed. Retained earnings is increased. On December 31, Pack Corp. s board of directors canceled 50,000 shares of $2.50 per value common stock held in treasury an average cost of $13 per share. Before recording the cancelation of the treasury stock, Pack had the following balances in equity accounts: Common stock $540,000 Additional paid-in capital $750,000 Retained earni9ngs $900,000 Treasury stock at cost $650,000 In its balance sheet at December 31, Pack should report common stock outstanding of A. $0 B. $250,000 C. $415,000 D.540,000 At December 31, Year 3, Rama Corp. had 20,000 shares of $1 per value treasury stock that had been acquired in year 3 at $12 per share. In may Year 4, Rama issued 15,000 of these treasury shares at $10 per share. The cost method is used to record treasury stock trans actions. Rama is located in a state where laws relating to acquisition of treasury stock restrict the availability of retained earning for declaration of dividends. At December 31, year 4, what amount should Rama show in note to financial statements as a restriction of retained earnings as a result of its treasury stock transactions? $ 5,000 $ 10, 000 $ 60,000 $90,000 Cyan Corp. issued 20,000 shares of $5 per common stock at $10 per share. On December 31, Year 3, Cyan's retained earnings were $ 300,000. In march year 4, cyan reacquired 5,000 shares of its common stock at $ 20 per share. In June Year 4, Cyan sold 1,000 of these shares to its corporate officers for $25 per share. Cyan uses the cost method to record treasury stock, Net income for the year ended December 31, Year 4 was $80,000. At December 31. Year 4, what amount should Cyan report as retained earnings? A. $360,000 B.$365,000 C. $375,000 D.$380,000 At its data of incorporation, Glean, Inc, issued 100,000 shares of its $10 per common stock at $ 11 per share. During the current year. Glean acquired 30,000 shares of its common stock at a price of $ 10 per share and accounted for them by the cost method subsequently, these shares were reissued at a price of $ 12 per share. Glean had made no other issuances or acquislitions of its own common stock. What effect does the reissuance of the stock have on the following accounts? 30. During the current year, onal co. purchased 10,000 shares of its own stock at $7 per share. The stock was originally issued at $ 6. The firm sold 5,000 of the treasury shares for $10 per share. The firm uses the cost method to account for treasury stock. What amount shaould onal report its income statement for these transactions? A. $0 B. $5,000 gain.; C. $10,000 loss D.$15,000 gain. If a corporation sells some of its treasury stock at a price that exceeds its cost, this excess should be A. Reported as a gain in the income statement. B. Treated as a reduction in the carrying amount of remaining treasury stock. C. Credited to additional paid-in capital. D. Credited to retained earnings. In year 2, Fogg, inc, issued $10 per value common stock for $25 per share. no other common stock transactions occured until March 31, Year 4, When Fogg acuired some of the issued shares for $20 per share and redired them. Which of the following statements accurately states an effect of this acquisition and refirement? Year 4 net income is decreased. Year 4 net income is increased. Additional paid-in capital is decreassed. Retained earnings is increased. On December 31, Pack Corp. s board of directors canceled 50,000 shares of $2.50 per value common stock held in treasury an average cost of $13 per share. Before recording the cancelation of the treasury stock, Pack had the following balances in equity accounts: Common stock $540,000 Additional paid-in capital $750,000 Retained earni9ngs $900,000 Treasury stock at cost $650,000 In its balance sheet at December 31, Pack should report common stock outstanding of A. $0 B. $250,000 C. $415,000 D.540,000