Porter co. began its business last year and issued 10,000 shares of common stock at $3 per share. the par value of the stock is $1 per share. during january of the current year, porter bought back 500 shares at $6 per share, which were reported by porter as treasury stock. the treasury stock shares were reissued later in the current year at $10 per share. porter used the cost method to account for its equity transactions. what amount should porter report as paid-in capital related to its treasury stock transactions on its balance sheet for the current year?
a. $ 4,500
b. $ 2,000
c. $ 1,500
d. $20,000

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.

By which distribution system is more than 90 percent of u. s. coal shipped? a. pipelinesb. trucksc. waterwaysd. railroadse. none of the above