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Carla Vista Enterprises buys back 320,000 shares of its stock from investors at $16.50 a share. Two years later, it reissues this stock for
Carla Vista Enterprises buys back 320,000 shares of its stock from investors at $16.50 a share. Two years later, it reissues this stock for $16 a share. The journal entry to record the stock reissuance would debit Cash for: Multiple Choice $5,120,000 and a credit to Treasury Stock for $5,120,000. $5,120,000, a credit to Treasury Stock for $5,120,000, and a credit to Additional Paid-In Capital for $160,000. $5,120,000, a debit to Additional Paid-in Capital for $160,000, and a credit to Treasury Stock for $5,280,000. $5,280,000 and a credit to Treasury Stock for $5,280,000.
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