Calgary Water Supply Inc. bottles and distributes spring water. On September 9 of the current year, Calgary Water Supply reacquired 20,000 shares of its common stock at $44 per share.
a. What is the balance of Treasury Stock on December 31 of the current year?
b. Where will the balance of Treasury Stock be reported on the balance sheet?
c. For what reasons might Calgary Water Supply have purchased the treasury stock?