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5-1 .7 ury Stock Analysis Ray Holt Corporation has retained you as a consultant on accounting policies and dures. During 2016, the company engaged in a number of treasury stock transactions, having foreseen an opportu- nity to report its treasury stock as an asset and to recognize a profit in trading its own stock. The transactions were as follows: 1. Reacquired 100 shares of its $10 par common stock at $20 per share. The shares had originally been issued at S23 per share. $23 per share. Reacquired 50 shares of its $100 par preferred stock at $140 per share. The shares had originally been issued at S170 per share. 3. 4. Sold all common treasury shares held at $25 per share. 5. Reacquired 150 shares of its $100 par preferred stock at $130 per share. The shares had originally been issued at $170 per share. Retired all preferred shares held in the treasury 6. . Reured all preferred shares held in the treasury. Required: 1. Next Level Is the corporation correct in assuming that its treasury stock is an asset and that it can recognize a profit or gain from its treasury stock transactions? Explain. Next Level Prepare an analysis of treasury s analysis should contain proper journal entries for each of the treasury stock transactions occurring during 20 prepared using the cost method discussed in the chapter. Next Level Conclude the analysis by discussing how "gains" on treasury stock are reported and stock is reported on a corporation's balance sheet. 2. tock accounting for Mr. Robert Richter, the controller. This 3

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