Treasury StockTransactions

Blue Moon Water Supply Inc. bottles and distributes spring water. On July 17 of the current year, Blue Moon Water Supply reacquired 7,200 shares of itscommon stockat $56 per share.

a.What is the balance of Treasury Stock on December 31 of the current year?

$

b.Where will the balance of Treasury Stock be reported on the balance sheet?

c.All of the following are reasons that Blue Moon Water Supply may have purchased the treasury stock except: