Question

What is the per share cost of the treasury stock purchased?  Stockholders’ Equity (December 31,

2016)     Common stock—$6 par value, 100,000 shares

authorized, 35,000 shares issued and outstanding $ 210,000 Paid-in capital in excess of par value, common stock   170,000 Retained earnings   340,000 Total stockholders’ equity $ 720,000  

Stockholders’ Equity (December 31, 2017)       Common stock—$6 par value, 100,000 shares

authorized, 41,400 shares issued, 3,000 shares in treasury $ 248,400   Paid-in capital in excess of par value, common stock   208,400   Retained earnings ($30,000 restricted by treasury stock)   440,000       896,800   Less cost of treasury stock   (30,000 ) Total stockholders’ equity $ 866,800  

The following transactions and events affected its equity during year 2017.

Jan.   5   Declared a $0.50 per share cash dividend, date of record January 10. Mar.   20   Purchased treasury stock for cash. Apr.   5   Declared a $0.50 per share cash dividend, date of record April 10. July   5   Declared a $0.50 per share cash dividend, date of record July 10. July   31   Declared a 20% stock dividend when the stock’s market value was $12 per share. Aug.   14   Issued the stock dividend that was declared on July 31. Oct.   5   Declared a $0.50 per share cash dividend, date of record October 10.

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