Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the following ways? Multiple Choice Debit Common Stock for $22,000, debit Additional Paid-in Capital for $31,978,000 and credit Cash for $32.00 million. Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million. Debit Common Stock for $22,000, debit Additional Paid-in Capital for $17,978,000 and credit Cash for $18.00 million. Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for $18.00 million and credit Cash for $18.00 million.
Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the following ways? Multiple Choice Debit Common Stock for $22,000, debit Additional Paid-in Capital for $31,978,000 and credit Cash for $32.00 million. Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million. Debit Common Stock for $22,000, debit Additional Paid-in Capital for $17,978,000 and credit Cash for $18.00 million. Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for $18.00 million and credit Cash for $18.00 million.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:MC Qu. 11-74 Anthem Inc. issues...
Anthem Inc. issues 200,000 shares of stock with a par value of $0.11 for $160 per share. Three years
later, it repurchases these shares for $90 per share. Anthem records the repurchase in which of the
following ways?
Multiple Choice
Debit Common Stock for $22,000, debit Additional Paid-in Capital for
$31,978,000 and credit Cash for $32.00 million.
Debit Treasury Stock for $18.00 million and credit Cash for $18.00 million.
Debit Common Stock for $22,000, debit Additional Paid-in Capital for
$17,978,000 and credit Cash for $18.00 million.
Debit Stockholders' Equity for $32.00 million, credit Additional Paid-in Capital for
$18.00 million and credit Cash for $18.00 million.
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