The following data has been collected about Keller Company's stockholders' equity accounts:
$\begin{array}{ll}
\text {Common stock $ \$ 10 $ par value 20,000 shares }&\$100,000\
\text {authorized and 10,000 shares issued, 9,000 shares outstanding}\
\text { Paid-in capital in excess of par value, common stock } & 50,000 \
\text { Retained earnings } & 25,000 \
\text { Treasury stock } & 11,500
\end{array}$

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Assuming 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 Keller Company's stockholders' equity accounts:
$\begin{array}{ll}
\text {Common stock $ \$ 10 $ par value 20,000 shares }&\$100,000\
\text {authorized and 10,000 shares issued, 9,000 shares outstanding}\
\text { Paid-in capital in excess of par value, common stock } & 50,000 \
\text { Retained earnings } & 25,000 \
\text { Treasury stock } & 11,500
\end{array}$

-
Assuming 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 the treasury stock is calculated by dividing the total cost of the treasury stock by the number of treasury shares. Since there are 1,000 treasury shares (10,000 issued - 9,000 outstanding), the cost per share is $11,500 / 1,000 = $11.50.

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