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Assume that a company paid $12 per share to purchase 2,000 shares of its $2 par common stock as treasury stock. The purchase

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Answer #1

Purchase of treasury stock will decrease the total equity. it will calculated based on value of purchase.

Here they have purchased shares for $12 per share. so total amount of $24,000 will decrease ($12*2,000)

Answer is A. Decreased total equity by $24,000

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