A Corporation Purchased 10,000 Shares of Its Own $20 Par

question 58

Multiple Choice

A corporation purchased 10,000 shares of its own $20 par value common stock for $30 per share. The effect on total stockholders' equity is:

• A)$200,000 increase.
• B)$200,000 decrease.
• C)$300,000 increase.
• D)$300,000 decrease.

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Definitions:

Social Needs

The essential requirements for individuals to feel accepted, valued, and connected within a community or society.

Incentive Theories

Incentive theories suggest that behavior is motivated by a desire for external rewards or incentives.

Drive Theories

Theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Social Motives

The psychological forces that drive individuals to interact, affiliate, or connect with others.