On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On September 30, 2020, Star Corp. acquired 500 shares of its common stock at $15 per share. What amount is debited to Common Stock (a) under the treasury stock method and (b) under a direct stock retirement?     Select one: a. Treasury Stock Method Direct Retirement $1,000 $1,000 b. Treasury Stock Method Direct Retirement $0 $1,000 c. Treasury Stock Method Direct Retirement $0 $9,000 d. Treasury Stock Method Direct Retirement $1,000 $0

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, 2020, Star Corp. sold 10,000 shares of common stock, par $2, at $18 per share. On September 30, 2020, Star Corp. acquired 500 shares of its common stock at $15 per share. What amount is debited to Common Stock (a) under the treasury stock method and (b) under a direct stock retirement?

 

 

Select one:
a.
Treasury Stock Method Direct Retirement
$1,000 $1,000
b.
Treasury Stock Method Direct Retirement
$0 $1,000
c.
Treasury Stock Method Direct Retirement
$0 $9,000
d.
Treasury Stock Method Direct Retirement
$1,000 $0
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