If 3,000 Shares of $5 Par Common Stock Are Purchased

question 119

Multiple Choice

If 3,000 shares of $5 par common stock are purchased as treasury stock for $16, the total stockholders equity:

• A)decreases by $48,000.
• B)decreases by $1,500.
• C)is the same as before the purchase of the treasury stock.
• D)increases by $46,500.

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Definitions:

Microtubules

Hollow, cylindrical fibers consisting of tubulin protein subunits; major components of the cytoskeleton and found in mitotic spindles, cilia, flagella, centrioles, and basal bodies.

ATP

Adenosine triphosphate, an organic compound that provides energy to drive many processes in living cells.

Eukaryotic Flagellum

Eukaryotic Flagellum refers to a lash-like appendage that protrudes from the cell body of certain eukaryotic cells, used primarily for locomotion.

Surface Area

The total extent of the outer layer or covering of an object, often related to the rate of processes like absorption and evaporation.