Perez Co. previously acquired 10,000 shares of its own stock ($1 par) in the open market for $10 per share. This year the firm reissued all of these shares at $12 per share. Which of the following will occur as a result of the treasury shares being reissued:

a. Additional Paid in Capital will increase by $20,000.
b. A gain of $20,000 will be included on the income statement.
c. Treasury stock will decrease by $120,000
d. Common Stock will increase by $10,000

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.