Question

The stockholders' equity section of Cinrich, Inc.'s balance sheet on January 1, Year5, appeared as follows:

Common stock, $20 par, 20,000 shares issued and outstanding

$ 400,000

Additional paid-in capital

160,000

Retained earnings

400,000

Total stockholders'' equity

$960,000

On March 1, Year5, Cinrich reacquired 4,000 shares of common stock at $32 per share. All common shares were originally sold for $28 each. How much should be reported in the treasury stock account on the March 31, Year5 balance sheet? (All of the numeric choices represent normal balances.)

80,000

104,000

128,000

4,000

none of the above

Common stock, $20 par, 20,000 shares issued and outstanding

$ 400,000

Additional paid-in capital

160,000

Retained earnings

400,000

Total stockholders'' equity

$960,000