Ask Question
BusinessBusiness
13 December, 19:39

A corporation purchases 15,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $525,000. b. Decrease by $300,000. c. Decrease by $525,000. d. Decrease by $225,000.

+2
Answers (1)
  1. 13 December, 20:09
    0
    Answer: Option (c) is correct.

    Explanation:

    Given that,

    A corporation purchases = 15,000 shares of its own $20 par

    Common stock = $35 per share

    Effect on total stockholders' equity:

    As purchase of own stock will reduce total stockholders equity by

    = Shares purchased * Per share price

    = 15,000 * $35

    = $525,000

    Therefore, total stockholders' equity decreases by $525,000.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A corporation purchases 15,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Consignment goods are: O Goods shipped by the owner to the consignee who sells the goods for the owner. O Reported in the consignee's books as inventory. O Goods shipped to the consignor who sells the goods for the owner.
Answers (1)
On July 22, Peter sold $15,500 of inventory items on credit with the terms 2/15, net 30. Payment on $10,000 sales was received on August 1 and the remaining payment was received on August 12.
Answers (1)
Total fixed costs for Taylor Incorporated are $260,000. Total costs, including both fixed and variable, are $500,000 if 156,000 units are produced. The variable cost per unit is
Answers (1)
For a variety of reasons, a bank sometimes will hold more reserves than is legally required. These reserves are known as excess reserves. How does holding excess reserves affect the money supply?
Answers (1)
VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16 million, respectively.
Answers (1)
New Questions in Business
You are thinking about investing in a mine that will produce $10,000 worth of ore in the first year. As the ore closest to the surface is removed it will become more difficult to extract the ore.
Answers (1)
Customer relationship management systems collect the data that can be mined to discover the next product line extension that consumers covet. Group of answer choices false true
Answers (1)
Which of the following statements is the most accurate? a foreign corporation: a. does business in one or more states, but is chartered in another state. b. is 50% owned by individuals or companies from another nation. c.
Answers (1)
Excerpts from Dowling Company's December 31, 2021 and 2020, financial statements and key ratios are presented below (all numbers are in millions) : 2021 2020 Accounts receivable (net) $ 25 $ 36 Net sales $ 135 $ 120 Cost of goods sold $ 80 $ 75 Net
Answers (1)
Which is the correct expansion of the term Internet? A. Internetwork B. Institutional Network C. Instructional Network D. International Network
Answers (1)
Home » Business » A corporation purchases 15,000 shares of its own $20 par common stock for $35 per share, recording it at cost. What will be the effect on total stockholders' equity? a. Increase by $525,000. b. Decrease by $300,000. c. Decrease by $525,000. d.
Sign Up Forgot Password?