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Grid Corp. acquired some of its own common shares at price greater than both their par value and original issue price but less than their

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Grid Corp. acquired some of its own common shares at price greater than both their par value and original issue price but less than their book value. Grid uses the cost method of accounting for treasury stock. What is the impact of this acquisition on total equity and the book value per common share? Total Equity Increase Increase Book Value per Share Increase Decrease Total Equity Decrease Increase Book Value per Share Increase Decrease Selectedinformation from the accounts of Row Co. atDecember 31,Year4,follows: Total income since incorporation $420,000 Total cash dividends paid $130,000 Total value of property dividends distributed $30,000 Excess of proceeds over cost of treasury stock sold, accounted for using the cost method $110,000 In its December 31, Year 4, financial statements, what amount should Row report as retained earnings? $260,000 $290,000 $370,000 $400,000 On December 1, Year 4, Line Corp. received a contribution of 2,000 shares of its $5 par value common stock from a shareholder. On that date, the stock's fair value was $35 per share. The stock was originally issued for $25 per share By what amount will this contribution cause total equity to decrease if Line accounts for treasury stock using the cost method? $70,000 $50,000 $20,000 $0 Ten thousand shares of $10 par value common stock were issued initially at $15 per share. Subsequently. 1.000 of these shares Were purchased as treasury stock at $13 per share. The cost method of accounting for treasury stock is used What is the effect of the purchase of the treasury stock on the amount reported in the balance sheet on each of the following? AdditionalPaid-In Capital Total Equity Additional Paid-In Capital No effect No effect Total Equity No effect Decrease Additional Paid-In Capital Decrease Decrease Total Equity No effect Decrease

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