Essay
On its December 31, 2009, balance sheet, Houston Corporation reported its stockholders' equity as follows:
During 2010, the following transactions occurred:
Reacquired 2,500 shares at $7 per share.
Sold 1,200 shares of treasury stock at $8 per share.
Sold 500 shares of treasury stock at $6 per share.
Net income for 2010 amounted to $80,000. No dividends were declared.
Prepare the stockholders' equity section of the balance sheet as it should appear on December 31, 2010.

Correct Answer:

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