The following data has been collected about a company's stockholders' equity accounts: The treasury shares were all purchased at the same price.The cost per share of the treasury stock is:
A)$1.15
B)$1.28
C)$11.50
D)$10.50
E)$10.00

Question

The following data has been collected about a company's stockholders' equity accounts:  The treasury shares were all purchased at the same price.The cost per share of the treasury stock is:
A)$1.15 
B)$1.28 
C)$11.50 
D)$10.50 
E)$10.00

Quizplus · Accepted Answer

The cost per share of treasury stock is calculated by dividing the total cost of treasury stock by the number of shares of treasury stock. 
Total cost of treasury stock = 1,150,000 
Number of shares of treasury stock = 100,000 
Cost per share = Total cost of treasury stock / Number of shares of treasury stock = 1,150,000 / 100,000 = $11.50

The Following Data Has Been Collected About a Company's Stockholders