The cancellation of the treasury stock

Reference no: EM131118463

On December 31, 2006, Pack Corp.'s board of directors canceled 50,000 shares of $2.50 par value common stock held in treasury at an average cost of $13 per share. Before recording the cancellation of the treasury stock, Pack had the following balances in its stockholders' equity accounts:

Common stock	$540,000
Additional paid-in capital	750,000
Retained earnings	900,000
Treasury stock, at cost	650,000

In its balance sheet at December 31, 2006, Pack should report a common stock balance of

$0
$250,000
$415,000
$540,000

Reference no: EM131118463

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