Question

The stockholders equity section of Cinrich, Inc.'s balance sheeton January 1, Year3, appeared as follows:

Common stock, $24 par, 20,000 shares issued and outstanding $480,000

Additional paid-in capital 160,000 Retained earnings 400,000

Total stockholders equity $1,040,000

On March 1, Year3, Cinrich reacquired 4,000 shares of commonstock at $40 per share. All common shares were originally sold for$32 each. How much should be reported in the treasury stock accounton the March 31, Year3 balance sheet? (All of the numeric choicesrepresent normal balances.)

a. $0 b. $128,000 c. $160,000 d. $320,000 e. None of theabove