Peter's Computers Purchased 1000 Shares of Its Own $3 Par

question 97

Multiple Choice

Peter's Computers purchased 1000 shares of its own $3 par value common stock for $92,000.As a result of this transaction:

• A)Peter's stockholders' equity increased $89,000.
• B)Peter's stockholders' equity increased $3000.
• C)Peter's stockholders' equity decreased $92,000.
• D)Peter's stockholders' equity increased $92,000.

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Definitions:

Tax

A mandatory monetary fee or different kind of charge placed on a taxpayer by government authorities to finance government operations and diverse public expenses.

Consumer Surplus

The divergence between the amount consumers are prepared to pay and the amount they actually pay for a good or service.

Excise Tax

A tax imposed on specific goods, services, or transactions, often with the aim of discouraging their use or raising revenue.

Hamburgers

A popular fast-food item typically made of ground beef, chicken, or other meats, served inside a split bun.