galaxy industries buys back 600,000 shares of its stock from investors at $45 a share. two years later it reissues this stock for $65 a share. the stock reissue would be recorded with a debit to cash for

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{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [], "new_concepts": [ "Treasury Stock Reissuance", "Cash Debit Calculation" ], "current_concepts": [ "Treasury Stock", "Stockholders Equity Transactions", "Treasury Stock Reissuance" ] } ## Identify the transaction details $$ \begin{aligned} &\text{Shares reissued} = 600,000 \ &\text{Reissue price per share} = \$65 \end{aligned} $$ ## Calculate the debit to Cash $$ \begin{aligned} &\text{Debit to Cash} = \text{Shares reissued} \times \text{Reissue price per share} \ &\text{Debit to Cash} = 600,000 \times \$65 = \$39,000,000 \end{aligned} $$ $39,000,000$ { "subject": "Business", "question_type": "Free Response", "knowledge_point": [ "Business", "Accounting", "Treasury Stock Transactions" ] }

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Explanation:

Identify the transaction details

Calculate the debit to Cash

Answer: