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

question 83

Multiple Choice

A corporation purchases 20,000 shares of its own $10 par common stock for $25 per share, recording it at cost. What will be the effect on total stockholders' equity?

• A) Increase by $200,000
• B) Decrease by $500,000
• C) Increase by $500,000
• D) Decrease by $200,000

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Definitions:

Food Production

The process that involves growing crops and raising livestock for human consumption.

Paleolithic Villages

Early human settlements dating from the Paleolithic era, characterized by simple structures and tools, and a hunter-gatherer way of life.

Toolmaking

The process of creating instruments or devices that can be used to perform functions, traditionally associated with human development.

Pottery

The craft or process of making vessels and other objects with clay and other ceramic materials, which are fired at high temperatures to give them a hard, durable form.