Question

Grant, Inc. had 60,000 shares of treasury stock ($10 par value) at December 31, 2014, which it acquired at $11 per share. On June 4, 2015, Grant issued 30,000 treasury shares to employees who exercised options under Grant's employee stock option plan. The market value per share was $13 at December 31, 2014, $15 at June 4, 2015, and $18 at December 31, 2015. The stock options had been granted for $12 per share. The cost method is used. What is the balance of the treasury stock on Grant's balance sheet at December 31, 2015?a. $210,000.b. $270,000.c. $330,000.d. $360,000.

Answer 1

c. $330,000

Step-by-step explanation:

Step 1. Given information.

Treasury shares = 30.000

Mount of share acquisition = $11

Step 2. Formulas needed to solve the exercise.

The cost method = treasury shares * Mount of share acquisition

Step 3. Calculation

= 30,000 * 11= $330,000

Step 4. Solution.

Balance of Treasury Stock on Grant's Balance Sheet At December 31,2015 using the cost method is $330,000