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:

Ego-syntonic

Refers to thoughts, impulses, and behaviors that are consistent with an individual's self-perception, often contrasted with ego-dystonic, which feels foreign to one's self-image.

Common Personality Disorder

Refers to a range of mental disorders characterized by deeply ingrained, inflexible patterns of thought, feeling, or behavior that deviate significantly from the expectations of culture.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.