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1 March, 05:43

During the current year, Onal Co. purchased 10,000 shares of its own stock at $7 per share. The stock was originally issued at $6. The firm sold 5,000 of the treasury shares for $10 per share. The firm uses the cost method to account for treasury stock. What amount should Onal report in its income statement for these transactions?

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  1. 1 March, 05:46
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    What amount should Onal report in its income statement for these transactions? 0.

    Explanation:

    deb cre

    year-1 Treasury Stock 70000

    (10000*7)

    Cash 70000

    year-1 Cash 50000

    (5000*10)

    Treasury Stock 35000

    (5000*7)

    Paid in capital for treasury stock 15000
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