Did the company benefit from the treasury stock transaction?

Did the company benefit from the treasury stock transaction?.

The Stockholders’ Equity category of Bradford Company’s balance sheet on January 1, 2017, appeared as follows: Common stock, $10 par, 10,000 shares issued and outstanding …………………$100,000 Additional paid-in capital ……………………………………………………………50,000 Retained earnings ……………………………………………………………………80,000 Total stockholders’ equity …………………………………………………………$230,000 The following transactions occurred during 2017: a. Reacquired 2,000 shares of common stock at $20 per share on July 1. b. Reacquired 400 shares of common stock at $18 per share on August 1. Required 1. Identify and analyze the effect of each transaction. 2. Assume that the company resold the shares of treasury stock at $28 per share on October 1. Did the company benefit from the treasury stock transaction? If so, where is the ”gain” presented on the balance sheet? View Solution:
The Stockholders Equity category of Bradford Company s balance sheet on

Did the company benefit from the treasury stock transaction?

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