Helix Corporation has 150,000 no par value common shares authorized, issued and outstanding. All 150,000 shares were issued at $ 80 per share. Retained earnings are $ 325,000. If 3,000 shares were reacquired at $ 99 and cancelled, shareholders' equity would decrease by
A) $ 0.
B) $ 57,000.
C) $ 240,000.
D) $ 297,000.

Question

Quizplus · Accepted Answer

When shares are reacquired and cancelled, the decrease in shareholders' equity is the cost to reacquire the shares. Here, 3,000 shares were reacquired at $99 each, so the decrease is 3,000 * $99 = $297,000.

Helix Corporation Has 150,000 No Par Value Common Shares Authorized