Wishtown Marketing Corporation reported the following stockholders equity at December 31 (adapted and in millions): Common stock........................................

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Wishtown Marketing Corporation reported the following stockholders’ equity at December 31 (adapted and in millions):

Common stock........................................ $ 281
Additional paid-in capital......................... 245
Retained earnings.................................. 2,199
Treasury stock......................................... (691)
Total stockholders’ equity ................. $2,034


During the next year, Wishtown purchased treasury stock at a cost of $28 million and resold treasury stock for $14 million (this treasury stock had cost the company $5 million). Record the purchase and resale of Wishtown’s treasury stock. Overall, how much did stockholders’ equity increase or decrease from the two transactions?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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