Vilnius Corporation has 100,000 no par value common shares authorized, issued and outstanding.All 100,000 shares were issued at $90 per share.Retained earnings are $250,000.If 2,000 shares were reacquired at $98 and cancelled, shareholders' equity would decrease by

Question

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When shares are reacquired and cancelled, the cost of reacquisition is deducted from shareholders' equity. The cost is 2,000 shares x $98 = $196,000.

Vilnius Corporation Has 100,000 No Par Value Common Shares Authorized