The balance sheet of Company A included the following shareholders' equity section at December 31, 2020...

Transcribed Image Text:

The balance sheet of Company A included the following shareholders' equity section at December 31, 2020 ($ in millions): Common stock ($1 par value, authorized 80 M shares, issued and outstanding 60M shares) $60 Paid-in capital- excess of par 480 Retained earnings 250 Total shareholders' equity $790 In early 2021, Company A purchased and retired 3 million shares for $10 million. Immediately after the purchase of the shares, the balances in the Paid- in capital-excess of par and Retained earnings accounts are: O A balance of $480 in the Paid-in capital- excesss of par account, and a balance of $250 in the Retained earnings account. A balance of $480 in the Paid-in capital- excesss of par account, and a balance of $223 in the Retained earnings account. A balance of $456 in the Paid-in capital- excesss of par account, and a balance of $247 in the Retained earnings account. A balance of $453 in the Paid-in capital- excesss of par account, and a balance of $250 in the Retained earnings account. The balance sheet of Company A included the following shareholders' equity section at December 31, 2020 ($ in millions): Common stock ($1 par value, authorized 80 M shares, issued and outstanding 60M shares) $60 Paid-in capital- excess of par 480 Retained earnings 250 Total shareholders' equity $790 In early 2021, Company A purchased and retired 3 million shares for $10 million. Immediately after the purchase of the shares, the balances in the Paid- in capital-excess of par and Retained earnings accounts are: O A balance of $480 in the Paid-in capital- excesss of par account, and a balance of $250 in the Retained earnings account. A balance of $480 in the Paid-in capital- excesss of par account, and a balance of $223 in the Retained earnings account. A balance of $456 in the Paid-in capital- excesss of par account, and a balance of $247 in the Retained earnings account. A balance of $453 in the Paid-in capital- excesss of par account, and a balance of $250 in the Retained earnings account.

Answer rating: 100% (QA)

The balances in the paid 1 G Pital excess of par and Retai... View the full answer