treasuary stock transactions multiple choice question 461437

Sosa Co.’s stockholders’ equity at January 1, 2010 is as follows:

Common stock, $10 par value; authorized 300,000 shares;

Outstanding 225,000 shares

$2,250,000

Paid-in capital in excess of par

900,000

Retained earnings

2,190,000

Total

$5,340,000

During 2010, Sosa had the following stock transactions:

Acquired 6,000 shares of its stock for $270,000.

3,600 treasury shares at $50 a share.

Sold the remaining treasury shares at $41 per share.

No other stock transactions occurred during 2010. Assuming Sosa uses the cost method to record treasury stock transactions, the total amount of all additional paid-in capital accounts at December 31, 2010 is:

a) $870,000.

b) $891,600.

c) $908,400

d) $927,600.