1. The costs of issuing common shares:

a. They are recorded in a separate account (unamortized stock issue costs) and amortized over a period of no more than 10 years

b. They are posted to a separate account but are not amortized unless the company withdraws the shares

c. They are subtracted from the capital paid in excess (additional paid-in capital)

d. They are accounted for as an expense as incurred

2. When a company issues shares (common or preferred) in exchange for an asset other than money, the issue price is:

a. The market price of the shares on the issue date

b. The par value of the shares

c. The "book value per-share" of the shares.

c. None of the above because shares can only be issued in exchange for money

3. A company has on its books the Treasury stock account with a balance of $ 50,000 (its cost) and the Paid-in capital from treasury stock account with a balance of $ 5,000. The company sold half of the treasury stock for $ 18,000. The wage entry to record the sale of treasury stock is:

1. Cash 18,000

Loss on sale of treasury stock 7,000

Treasury stock 25,000

2. Cash 18,000

Retained earnings 7,000

Treasury stock 25,000

3. Cash 18,000

Paid-in capital from treasury stock 5,000

Retained earnings 2,000

Treasury stock 25,000

4. Cash 18,000

Paid-in capital from treasury stock 2,500

Retained earnings 4,500

Treasury stock 25,000