Tracey Corporation reports the following in its December 31, 2011, financial report:
The total balance in treasury stock on December 31, 2010, represents the acquisition of 1,500 shares of common stock on March 3, 2009.
REQUIRED:
a. Compute the number of shares of common stock issued during 2011.
b. Compute the average market price of the common shares issued during 2011.
c. Assume that Tracey Corporation earned net income of $2 million during 2011. Compute the amount of dividends that were declared during 2011.
d. If Tracey Corporation did not declare or pay any dividends during 2010, and again assuming a net income during 2011 of $2 million, compute the amount declared as dividends to common stockholders during 2011.
e. Prepare the entry that would have been necessary on March 3, 2009, to record the purchase of the treasury stock.
f. Assume that all shares of treasury stock reissued during 2011 were reissued at the same time and at the same price. Prepare the entry to record the reissuance of the treasury stock.
g. At what per-share price was the treasury stock reissued?