Essay
Elville Inc.was incorporated under provincial legislation with a December 31 year-end.The company has a single class of shares.As at December 31,2016,it had 900,000 shares issued and outstanding.These shares had a book value of $18,000,000 on the balance sheet.
During 2017,Elville repurchased 10% of the issued shares from one of the minority shareholders at a cost of $25 per share.The company held these in treasury and later found a buyer for half of these shares at $30.The other half were sold at $21 to another investor.
Required:
Record the share transactions using the single-transaction method for treasury stock,which is the preferred accounting method.
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