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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