If a Company Purchases Treasury Stock for $10,000 and Then

question 20

Multiple Choice

If a company purchases treasury stock for $10,000 and then reissues it for $3,000,the difference of $7,000 is

• A)treated as a gain on the sale.
• B)treated as a loss on the sale.
• C)an increase in stockholders' equity.
• D)a decrease in stockholders' equity.

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Definitions:

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, commonly referred to as the mean, median, or mode.

Chi-Square

A statistical test used to determine if a significant relationship exists between two variables in a contingency table.

Values Expected

The anticipated or predicted outcomes based on specific conditions or data.