A Corporation Purchases 20,000 Shares of Its Own $20 Par

question 206

Multiple Choice

A corporation purchases 20,000 shares of its own $20 par common stock for $35 per share, recording it at cost.What will be the effect on total stockholders' equity?

• A)Increase by $700,000.
• B)Decrease by $400,000.
• C)Decrease by $700,000.
• D)Decrease by $300,000.