E8-10A. Analyze equity accounts. (LO 1,2, 3, 5)
The following balances were shown on the year-end balance sheets for 2006 and2007 for Columbia Company. For each item, give the most likely reason for the change from one year to the next.
| 12/31/06 | 12/31/07 | |
| Common stock | $ 45,000 | $ 50,000 |
| Paid-in-capital | $200,000 | $230,000 |
| Retained earnings | $182,500 | *$200,000 |
| Treasury stock | $ (3,450) | $ (5,450) |
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