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Crystal Springs Inc. bottles and distributes spring water. On June 1 of the current year, Crystal reacquired 2,500 shares of its common stock at $60 per share. On July 8, Crystal sold 1,500 of the reacquired shares at $65 per share. The remaining 1,000 shares were sold at $58 per share on November 2.
a. Journalize the transactions of June 1, July 8, and November 2.
b. What is the balance in Paid-In Capital from Sale of Treasury Stock on December 31 of the current year?
c. For what reasons might Crystal Springs have purchased the treasury stock?
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