Smith Corporation Purchases 10,000 Shares of Its Own $20 Par

question 120

Multiple Choice

Smith Corporation purchases 10,000 shares of its own $20 par value common stock for $30 per share. What will be the effect on stockholders' equity?

• A)increase $200,000
• B)decrease $200,000
• C)increase $300,000
• D)decrease $300,000

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