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:

Semantic Memory

A type of long-term memory involving the storage of general knowledge and facts about the world, separate from personal experiences.

Behavioural Approach

A theoretical perspective focusing on observable behaviors and the ways in which they're learned from the environment.

Psychology Professor

A psychology professor is an academic and often a researcher at a college or university, specializing in the study of the mind and behavior, who teaches psychology courses to students.

Retrospective Memory

The ability to remember events that have occurred in the past or previously learned information.