In January 2008, Castro Corporation, a newly formed company, issued 10,000 shares of its $10 par common stock for $15 per share. On July 1, 2008, Castro Corporation reacquired 1,000 shares of its outstanding stock for $12 per share. The acquisition of these treasury shares

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The acquisition of treasury shares decreases total stockholders' equity because the company is using its own cash resources to buy back its own shares, reducing the equity available to shareholders.

In January 2008, Castro Corporation, a Newly Formed Company, Issued