Tuesday, July 30, 2013

What is the balance of this treasury stock account after these transactions? and Stock Squirrel.

What is the balance of this treasury stock account after these transactions?



If I repurchased 2,000 shares of my own stock for $ 40 per share. And the stock has a par of $ 10 per share. A month later I resold 1,200 of the treasury stock for $ 48 per share. What is the balance of the treasury stock account after these transactions?
And how do I fiqure this out please?


Stock best answer:

Answer by Larry
You'll be holding 800 shares (the 2,000 you repurchased less the 1,200 you later resold). Your cost basis is 2,000 x $ 40 = $ 80,000. You sold 1,200 x $ 48 = $ 57,600. This means that the 800 shares you're still holding cost you $ 28/share ($ 22,400 / 800).

All common stock shares have the same par value regardless of the date they were purchased. The company sets the par value at the issuance of the stock, usually at a nominal value.


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