Peter's Computers Purchased 2000 Shares of Its Own $10 Par

question 135

Multiple Choice

Peter's Computers purchased 2000 shares of its own $10 par value common stock for $97,000. As a result of this transaction:

• A)Peter's stockholders' equity increased $77,000.
• B)Peter's stockholders' equity increased $20,000.
• C)Peter's stockholders' equity decreased $97,000.
• D)Peter's stockholders' equity increased $97,000.

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Definitions:

Minor

A person under the legal age of majority, typically under 18 years old, who has certain restrictions on their legal capabilities such as entering into contracts.

Contract

A binding legal agreement between two or more parties that is enforceable by law, specifying obligations each must fulfill.

Adult

An individual who has reached the age of maturity as defined by law, typically 18 years old in many countries, which qualifies them for full legal rights and responsibilities.

Minor

A person under the age of majority, legally recognized as not having the full legal capacity and rights of an adult.