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

Question 92

Multiple Choice

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


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

Correct Answer:

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