TUFA, Inc. is a calendar year, nonpublic company that follows U. S. GAAP. TUFA uses the cost

Question:

TUFA, Inc. is a calendar year, nonpublic company that follows U. S. GAAP. TUFA uses the cost method to account for repurchases of treasury stock. Recently, TUFA repurchased 10,000 shares of its from a key shareholder at $ 55 per share. This particular shareholder had initiated a lawsuit against TUFA. Thus, a settlement of this lawsuit was included in the repurchase agreement. Because TUFA is not publicly traded, it does not have an established market price. TUFA repurchased shares last year at $ 35 per share. However, the company has increased performance each year for the past five years in terms of operating cash flow and earnings. Net income last year was $ 1.67 per share. This year it was $ 2 per share. Provide the journal entry (s) that TUFA, Inc. should make when it reacquires the shares. Use the Codification to provide support for your response. Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...