On December 31, 2006, Pack Corp.’s board of directors canceled 50,000 shares of $2.50 par value common stock held in treasury at an average cost of $13 per share. Before recording the cancellation of the treasury stock, Pack had the following balances in its stockholders’ equity accounts:
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|
Common stock |
$540,000 |
|
Additional paid-in capital |
750,000 |
|
Retained earnings |
900,000 |
|
Treasury stock, at cost |
650,000 |
In its balance sheet at December 31, 2006, Pack should report a common stock balance of
- $0
- $250,000
- $415,000
- $540,000