Treasury Stock


Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011?

A.  $0

B.  $25,000

C.  $45,000

D.  $20,000


When the selling price of treasury stock is greater than its cost, the company credits the difference to

A.  Gain on Sale of Treasury Stock

B.  Paid-in Capital from Treasury Stock

C.  Paid-in Capital in Excess of Par Value

D.  Treasury Stock


The purchase of treasury stock

A.  decreases common stock authorized

B.  decreases common stock issued

C.  decreases common stock outstanding

D.  has no effect on common stock outstanding


Marsh Company has other operating expenses of $240,000. There has been an increase in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Marsh’s cash payments for operating expenses?

A.  $228,000

B.  $232,000

C.  $200,000

D.  $280,000

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