A Corporation Purchases 30,000 Shares of Its Own $10 Par

question 88

Multiple Choice

A corporation purchases 30,000 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 $300,000.
• B)Decrease by $750,000.
• C)Increase by $750,000.
• D)Decrease by $300,000.

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