Grant, Inc. had 60,000 shares of treasury stock ($10 par value) at December 31,
ID: 2467418 • Letter: G
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.
Explanation / Answer
Balance of Treasury Stock on Grant's Balance Sheet At December 31,2015 using the cost method
= 30,000 * 11= $3,30,000
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