Effect on stockholders equity on sale of treasury stock
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Stock purchased at $3,000 is sold for $3,500. As a result what would be the two transaactions combined.
a) income will increase by $500
b)stockholders equity will increase by $3,500
c)stockholders equity will increase by $500
d) stockholders equity will not change
My choice was c. the equity will increase by $500
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The solution explains the effect on the stockholders equity if treasury stock is sold above cost
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Yes..the stock purchased is treasury stock. When treasury ...
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