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Sunny_sXe [5.5K]
3 years ago
11

_______Treasury Stock is reported on the balance sheet

Business
1 answer:
Debora [2.8K]3 years ago
5 0

Answer:

c. as a deduction from Stockholders’ Equity

Explanation:

The treatment of the treasury stock in the balance sheet is that it is deducted from the stockholder equity as it shows the buy back position of the common stock

The other things i.e retained earnings, additional paid in capital is to be added as it increased the balance of the stockholder equity

Therefore in the given case, the option C is correct

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Answer:

The correct answer is B.

Explanation:

Giving the following information:

Designer Dollhouses manufactures dollhouse kits that are meant to be assembled by customers. Each kit sells for $60 and has $12 in fixed production costs and $10 in variable production costs. Rather tha selling these kits, the firm is thinking about selling the dollhouses fully assembled for $95 each. The variable costs for assembling one dollhouse are expected to be $14.

Contribution margin Kits:

CM= selling price - unitary variable costs

CM= 60 - 12= 48

CM assembled:

CM= 95 - 12 - 14= 69

Effect in Net income= 69 - 48= 21

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