1. Nouveaux Co. was incorporated at the beginning of this calendar year. Its articles of incorporation authorize 500,000 shares of common stock, of which 100,000 were issued immediately. On June 30, Nouveaux repurchased 10,000 shares to be held as treasury stock. On September 30, it effected a 3-for-1 stock split. Consequently, the number of shares outstanding at year end was

A) 1,500,000

B) 330,000

C) 300,000

D) 270,000

In Year 3, Seda Corp. acquired 6,000 shares of its own $1 par value common stock at $18 per share. In Year 4, Seda reissued 3,000 of these shares at $25 per share. Seda uses the cost method to account for its treasury stock transactions.

Answer rating: 100% (QA)

Solution Tx A... View the full answer