At December 31,2018, Voltron Company had 20,000 shares of P 20 par value treasury shares that were acquired in 2018 at P 24 per share. In May 1,2019, additional 5,000 shares were reacquired and immediately retired at P 26 each.

These shares were originally issued at P 23. On June 1,2019, Voltron issued 15,000 of the treasury shares at P 20 each. The cost method is used to record the treasury shares transaction. At December 31,2019, what amount should Voltron show in its notes to financial statements as a restriction of retained earnings as a result of its treasury share transactions?

Answer rating: 100% (QA)

Introduction The purchase of its own shares by a company is to be included i... View the full answer