Horton co. was organized on january 2, 2012, with 500,000 authorized shares of $10 par value common stock. during 2012, horton had the following capital transactions: january 5âissued 375,000 shares at $14 per share. july 27âpurchased 25,000 shares at $11 per share. november 25âsold 20,000 shares of treasury stock at $13 per share. horton used the cost method to record the purchase of the treasury shares. what would be the balance in the paid-in capital from treasury stock account at december 31, 2012?

Varto company has 9,400 units of its sole product in inventory that it produced last year at a cost of $23 each. this year’s model is superior to last year’s, and the 9,400 units cannot be sold at last year’s regular selling price of $42 each. varto has two alternatives for these items: (1) they can be sold to a wholesaler for $8 each, or (2) they can be reworked at a cost of $251,100 and then sold for $34 each. prepare an analysis to determine whether varto should sell the products as is or rework them and then sell them.