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 The acquisition of treasury stock will cause the number of shares outstanding to Increase No effect Decrease Depends Tyler Corporation purchased 10,000 shares of its own $5 par-value common stock for S25 per share. This stock originally sold for $28 per share. Tyler used the cost method lo record this transaction If the par-value method had been used rather than the cost method, which of the following accounts would show a different dollar amount? Treasury stock and total shareholders' equity Additional paid-in capital and retained earnings. Paid-in capital from treasury stock and retained earnings Additional paid-in capital and treasury stock. Which one of the following statements regarding treasury stock is correct? It is unretired but no longer outstanding, yet it has all the rights of outstanding shares It is an asset representing shares that can be sold in the future or otherwise issued in stock option plans or in effectuating business combinations. It is unable to participate in the liquidation proceeds of the firm but able to participate in regular cash dividend distributions as well as stock dividends and stock splits. It is reflected in shareholders' equity as a contra account. Murphy Co. had 200,000 shares outstanding of S10 par common stock on March 30 of the current year Murphy reacquired 30 000 of those shares at a cost of $15 per share and recorded the transaction using the cost method on April 15. Murphy reissued the 30.000 shares at $20 per share and recognized a $50,000 gain on its income statement on May 20. Which of the following statements is correct? Murphy's comprehensive income for the current year is correctly stated. Murphy's net income for the current year is overstated Murphy's net income for the current year is understated. Murphy should have recognized a $50,000 loss on its income statement for the current year. 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 The acquisition of treasury stock will cause the number of shares outstanding to Increase No effect Decrease Depends Tyler Corporation purchased 10,000 shares of its own $5 par-value common stock for S25 per share. This stock originally sold for $28 per share. Tyler used the cost method lo record this transaction If the par-value method had been used rather than the cost method, which of the following accounts would show a different dollar amount? Treasury stock and total shareholders' equity Additional paid-in capital and retained earnings. Paid-in capital from treasury stock and retained earnings Additional paid-in capital and treasury stock. Which one of the following statements regarding treasury stock is correct? It is unretired but no longer outstanding, yet it has all the rights of outstanding shares It is an asset representing shares that can be sold in the future or otherwise issued in stock option plans or in effectuating business combinations. It is unable to participate in the liquidation proceeds of the firm but able to participate in regular cash dividend distributions as well as stock dividends and stock splits. It is reflected in shareholders' equity as a contra account. Murphy Co. had 200,000 shares outstanding of S10 par common stock on March 30 of the current year Murphy reacquired 30 000 of those shares at a cost of $15 per share and recorded the transaction using the cost method on April 15. Murphy reissued the 30.000 shares at $20 per share and recognized a $50,000 gain on its income statement on May 20. Which of the following statements is correct? Murphy's comprehensive income for the current year is correctly stated. Murphy's net income for the current year is overstated Murphy's net income for the current year is understated. Murphy should have recognized a $50,000 loss on its income statement for the current year