Elton Manufacturing Corporation purchased 4,000 shares of its own previously issued $10 par ordinary shares for $115,000. As a result of this event,

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When a company repurchases its own shares, the total equity decreases by the amount of cash paid for the shares. Therefore, Elton's total equity decreased by $115,000. The Share Capital-Ordinary account and the Share Premium-Ordinary account remain unchanged because the shares were purchased at their par value and not at a premium.

Elton Manufacturing Corporation Purchased 4,000 Shares of Its Own Previously