A Corporation Purchases 40,000 Shares of Its Own $30 Par

question 19

Multiple Choice

A corporation purchases 40,000 shares of its own $30 par common stock for $45 per share, recording it at cost. What will be the effect on total stockholders' equity?

• A) Increase by $1,800,000
• B) Decrease by $1,200,000
• C) Decrease by $1,800,000
• D) Increase by $1,200,000

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