Sweet Water Inc. bottles and distributes spring water. On July 15 of the current year, Sweet Water

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Sweet Water Inc. bottles and distributes spring water. On July 15 of the current year, Sweet Water Inc. reacquired 24,000 shares of its common stock at $60 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 Sweet Water Inc. have purchased the treasury stock?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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