A corporation purchases 8,828 shares of its own $2 par common stock for $15 per share,...
A corporation purchases 8,828 shares of its own $2 par common stock for $15 per share, recording it at cost. What will be the effect on total stockholders' equity?
a.decrease by $114,764
b.increase by $114,764
c.increase by $132,420
d.decrease by $132,420
Homework Answers
Treasury stock account is a contra account which reduces the stockholders equity
= 8828 shares * 15 per share
= 132,420 decrease
Option D is the answer
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