If a Corporation Appropriates Retained Earnings for Treasury Stock Transactions

question 75

Multiple Choice

If a corporation appropriates retained earnings for treasury stock transactions, the appropriation will affect total amounts for retained earnings and stockholders' equity as $\begin{array}{lll}&\text { Total } & \text { Total } \\&\text { Retained Earnings } & \text { Stockholders' Equity } \\ \text { I. } & \text { decrease} & \text { decrease } \\\text { II. } & \text { decrease } & \text { no effect }\\\text { III. } &\text { no effect }& \text { no effect} \\\text { IV. } &\text { no effect }&\text { decrease } \end{array}$

• A)I
• B)II
• C)III
• D)IV

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