1. Under the par value method, the balance in the Treasury Stock account for a companys common stock is

a) equal to the average amount of paid in capital of the companys outstanding shares

b) reported as a reduction of the balance of the common stock account

c) reported as a reduction of total stockholders equity

d) equal to the cost to reacquire the treasury shares.

2. On December 31, 20x1, ATC declared and distributed a property dividend. On that date, the property to be distributed had a carrying value of $100,000 and a fair market value of $180,000. How much gain should ATC report as a result of this declaration?

a) $0

b) $80,000

c) $100,000

d) $180,000