Please refer to the following information for Petra Sales Company:
If Petra Sales purchases an additional 5,000 shares of treasury stock at $14 per share, the total equity of the company will go down by $70,000.

Question

Please refer to the following information for Petra Sales Company:
  If Petra Sales purchases an additional 5,000 shares of treasury stock at $14 per share, the total equity of the company will go down by $70,000.

Quizplus · Accepted Answer

5,000 shares x $14 per share = $70,000. Therefore, purchasing these shares will decrease the equity of the company by $70,000.

Please Refer to the Following Information for Petra Sales Company