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On January 1st, the firm repurchase 3,800 shares of $0.01 par value common stock for $48 cash per share. On January 31st, the

On January 1st, the firm repurchase 7,700 shares of $0.10 par value common stock for $49 cash per share. On January 31st, the

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Answer #1

Answer to Question 1:

January 1: the firm repurchased 3,800 shares for $48 per share
January 31: the firm sold 310 of the shares repurchased for $35 per share

Decrease in treasury stock = Number of shares sold * Purchase price per share
Decrease in treasury stock = 310 * $48.00
Decrease in treasury stock = $14,880

Answer to Question 2:

January 1: the firm repurchased 7,700 shares for $49 per share
January 31: the firm sold 200 of the shares repurchased for $31 per share

Cash received from resale of treasury stock = Number of shares sold * Sale price per share
Cash received from resale of treasury stock = 200 * $31.00
Cash received from resale of treasury stock = $6,200

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