In January 2015, Finley Corporation, a newly formed company, issued 10,000 shares of its $10 par ordinary shares for $15 per share.On July 1, 2015, Finley Corporation reacquired 1,000 shares of its outstanding shares for $12 per share.The acquisition of these treasury shares

Question

Quizplus · Accepted Answer

The acquisition of treasury shares decreases total shareholders' equity because it reduces the company's cash and the number of outstanding shares, which in turn reduces the equity.

In January 2015, Finley Corporation, a Newly Formed Company, Issued