The city of imperial falls contracts with evergreen waste collection to provide solid waste collection to households and businesses. until recently, evergreen had an exclusive franchise to provide this service in imperial falls, which meant that other waste collection firms could not operate legally in the city. the price per pound of waste collected was regulated at 25 percent above the average total cost of collection. cost data for the most recent year of operations for evergreen are as follows:

On january 1, vermont corporation had 40,000 shares of $10 par value common stock issued and outstanding. all 40,000 shares has been issued in a prior period at $20.00 per share. on february 1, vermont purchased 3,750 shares of treasury stock for $24 per share and later sold the treasury shares for $21 per share on march 1. the journal entry to record the purchase of the treasury shares on february 1 would include a credit to treasury stock for $90,000 debit to treasury stock for $90,000 credit to a gain account for $112,500 debit to a loss account for $112,500