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Mena Corporation purchased 10,000 shares of its own $5 par-value common stock for $25 per share. This stock originally sold for $28 per share.

Mena used the cost method to record this transaction. If the par-value method had been used rather than the cost method, which of the following accounts would show a different dollar amount?

A. Treasury stock and total shareholders’ equity.

B. Additional paid-in capital and retained earnings.

C. Paid-in capital from treasury stock and retained earnings.

D. Additional paid-in capital and treasury stock.

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Question added by Deleted user
Date Posted: 2015/02/27
ATM Sarrowor Kamal Chowdhury
by ATM Sarrowor Kamal Chowdhury , Chief Finance Officer , Address: Bizzcorp International

Equity will be reduced $ 50,000 & shares 10,000

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Bilal Khan
by Bilal Khan , Executive Document Controller , Agility Logistics Parks

C. Paid-in capital from treasury stock ad retained earnings.

Mark Angelo Damuag
by Mark Angelo Damuag , Financial Analyst , Evacare Management Consultancy Inc

A. Treasury stock and total shareholders’ equity.

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