A Corporation Purchases 15,000 Shares of Its Own $20 Par

question 198

Multiple Choice

A corporation purchases 15,000 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 $525,000.
• B) Decrease by $300,000.
• C) Decrease by $525,000.
• D) Decrease by $225,000.

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Definitions:

Internet Gambling

Engaging in the act of betting or placing stakes on games of chance via the internet.

Tax Revenue

The income that is gained by governments through taxation, which is used to fund public services and government obligations.

Organized Crime

Crime committed by structured groups typically involving the provision of illegal goods and services.

Internet Gambling

Placing bets or wagers on games of chance or skill, typically using the internet or other forms of digital communication.