The Stockholders’ Equity category of Little Joe’s balance sheet on January 1, 2017, appeared as follows:

The Stockholders’ Equity category of Little Joe’s balance sheet on January 1, 2017, appeared as follows:

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The following transactions occurred during 2017:
a. Reacquired 5,000 shares of common stock at $20 per share on February 1.
b. Reacquired 1,200 shares of common stock at $13 per share on March 1.
Required
1. Identify and analyze the effect of the transactions.
2. Assume that the treasury stock was reissued on October 1 at $12 per share. Did the company benefit from the treasury stock reissuance? Where is the ‘‘gain’’ or ‘‘loss’’ presented on the fi-nancial statements?
3. What effect did the two transactions to purchase treasury stock and the later reissuance of that stock have on the Stockholders’ Equity section of the balance sheet?

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Identify the DSM-5 diagnostic criteria that you notice in the case studies below and explain how the client meets the criteria.

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