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