The balance in Treasury Stock on January 1, 2011 and December 31, 2011 is, respectively, $55,500 and $81,700. During the year, $58,500 of treasury stock was purchased. During the year, treasury stock was sold for $1,300 over its cost. The proceeds from the sale of treasury stock amounted to:
A)$33,600.
B)$32,300.
C)$31,000
D)$31,000.

Question

Quizplus · Accepted Answer

The proceeds from the sale of treasury stock amounted to $33,600. This is calculated as follows:Beginning balance of treasury stock: $55,500Treasury stock purchased during the year: $58,500Total treasury stock available for sale: $114,000Treasury stock sold during the year: $81,700Ending balance of treasury stock: $32,300Proceeds from the sale of treasury stock: $33,600

The Balance in Treasury Stock on January 1, 2011 and December