Prepare a memo, one page long, that explains your position. Make sure to cite the FASB Codification.Treasury Stock:Dawson Corporation has recently become the target of a takeover attempt by Ernie Banks, one of its largest shareholders. Mr. Banks currently owns 1,000 shares of Dawson, which gives him a 40 percent stake in the company. Mr. Banks’s shares have a current market value of $100,000. The two sides entered negotiations and entered into an arrangement were Dawson Corporation will by one half of Mr. Banks’s shares for $75,000 and Mr. Banks will agree not to buy anymore Dawson shares on the open market.. The CFO of Dawson believes, that even though the company paid $25,000 above market value for the shares, the entire purchase price may be recorded it its treasury stock account. Research the relevant GAAP and determine if the CFO is correct. Explain your answer in a memo and cite the Codification you used to support your position.
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