Use the following information for next 10 questions.

On March 1, 2009, the Miranda Company purchased 2,000 shares of its common stock for $25 per share for the treasury. On July 1, 2009, 1,000 of the treasury shares were sold for $30 per share. On October 1, 2009, 1,000 of the treasury shares were sold at $15 per share.

On January 1, 2009, Mirandas balance in Retained Earnings was $100,000. During the year, the company had net income of $20,000 and paid dividends of $5,000.

39. Which of the following is true regarding the purchase of Treasury stock on March 1?

a. Treasury stock decreased, and Total Equity decreased

b. Treasury stock decreased, and Total Equity increased

c. Treasury stock increased, and Total Equity decreased

d. Treasury stock increased, and Total Equity increased

e. None of the above

40. Refer to question #39. By what amount did Treasury Stock Change, if at all? ( If the account or amount did not change, state your answer as "$0")

41. Refer to question #39. By what amount did Total Equity Change, if at all? ( If the account or amount did not change, state your answer as "$0")

42. Which of the following is true regarding the sale of Treasury stock on July 1?

a. Treasury stock decreased and Total Equity decreased

b. Treasury stock decreased and Total Equity increased

c. Treasury stock increased and Total Equity decreased

d. Treasury stock increased and Total Equity increased

e. None of the above

43. Refer to question #42. By what amount did Treasury Stock Change, if at all? ( If the account or amount did not change, state your answer as "$0")

a. Treasury stock decreased and Total Equity decreased

b. Treasury stock decreased and Total Equity increased

c. Treasury stock increased and Total Equity decreased

d. Treasury stock increased and Total Equity increased

e. None of the above

44. Refer to question #42. By what amount did Total Equity change, if at all? ( If the account or amount did not change, state your answer as "$0")

45. Which of the following is true regarding the sale of treasury stock on October 1?

a. Treasury Stock decreased and Total Equity decreased

b. Treasury Stock decreased and Total Equity increased

c.Treasury Stock increased and Total Equity decreased

d. Treasury Stock increased and Total Equity increased

e. None of the above

46. Refer to question #45. By what amount did Treasury Stock Change, if at all? ( If the account or amount did not change, state your answer as "$0")

47. Refer to question #45. By what amount did Total Equity change, if at all? ( If the account or amount did not change, state your answer as "$0")

48. What is the balance in Retained earnings at the end of the year?