Hayden Valley Inc. bottles and distributes spring water. On July 14 of the current year, Hayden Valley reacquired 7,500 shares of its common stock at $120 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 Hayden Valley have purchased the treasury stock?