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If 3,000 Shares of $5 Par Common Stock Is Purchased

Question 16

Multiple Choice

If 3,000 shares of $5 par common stock is purchased as treasury stock for $16, the total stockholders equity:


A) increased by $46,500.
B) decreased by $48,000.
C) decreased by $1,500.
D) is the same as before the purchase of the treasury stock.

Correct Answer:

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