Please Refer to the Following Information for Peartree Company

question 65

Multiple Choice

Please refer to the following information for Peartree Company: If Peartree purchases an additional 1,000 shares of treasury stock at $18 per share, which of the following statements would be TRUE?

• A)Total equity of the company would remain unchanged.
• B)Total equity of the company would go up by $18,000.
• C)Total equity of the company would go down by $18,000.
• D)Total equity of the company would go down by $2,000.

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Definitions:

Building Expenses

Costs associated with the maintenance, repair, and running of a building.

Allocation Base

A criterion or measure used for distributing costs or expenses across different departments or products.

Building Depreciation

The systematic allocation of the cost of a building over its useful life to account for the decrease in its value over time.

Square Feet

A measurement unit for area, commonly used in real estate, equal to the area of a square with sides of one foot.