A Corporation Purchases 10,000 Shares of Its Own $10 Par

question 157

Multiple Choice

A corporation purchases 10,000 shares of its own $10 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity?

• A) increase, $100,000
• B) increase, $350,000
• C) decrease, $100,000
• D) decrease, $350,000

---

Definitions:

Emotionally Stressful Events

Situations or occurrences that trigger significant emotional stress, potentially leading to mental health challenges.

Nondeclarative Memory

A type of long-term memory that stores skills, habits, and learned responses that people can perform without conscious awareness.

Infantile Amnesia

The inability of adults to retrieve episodic memories (memories of situations or events) from the first few years of life.

Long-Term Potentiation

A long-lasting enhancement in signal transmission between two neurons that results from stimulating them simultaneously.