Identify the nature of agency conflicts and the associated costs for an organization. A.)Weak corporate governance is typically associated with low agency costs.

B.) Good corporate governance can minimize agency costs by decreasing conflicts of interest.

C.) Agency costs are increased when agents prioritize the interests of principals.

D.) Agency costs are only created when the interests of agents and principals are aligned.

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500