Corp. currently has 5,000 no par value common shares outstanding, with a book value of...
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Finance
Corp. currently has 5,000 no par value common shares outstanding, with a book value of $ 150,000.
Instructions
How would you explain what treasury shares are to a group of first year students? (1 mark)
What are two main reasons why a company may engage in "treasury shares"? (2 marks)
There is specific guidance relating to the reaquisition, retirement and conversion of shares under ASPE, how should a company allocate the amount paid for purchasing its own share if the amount paid is greater than the original issue price? (3 Marks)
Record the share transactions given below: (12 marks)
a) Bought 300 common shares at $ 31 each, to be held as treasury shares
b) Sold 80 treasury shares at $ 30
c) Sold 40 treasury shares at $ 34
d) Retired the rest of the treasury shares
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