Reference no: EM131216227
The stockholders equity section of Cinrich, Inc.'s balance sheet on January 1, Year3, appeared as follows:
Common stock, $24 par, 20,000 shares issued and outstanding $ 480,000
Additional paid-in capital 160,000 Retained earnings 400,000
Total stockholders equity $1,040,000
On March 1, Year3, Cinrich reacquired 4,000 shares of common stock at $40 per share. All common shares were originally sold for $32 each. How much should be reported in the treasury stock account on the March 31, Year3 balance sheet? (All of the numeric choices represent normal balances.)
a. $0 b. $128,000 c. $160,000 d. $320,000 e. None of the above
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