A corporation reacquires 10,000 shares of its own $25 par common

A corporation reacquires 10,000 shares of its own $25 par common stock for $420,000, recording it at cost.
(a) What effect does this transaction have on revenue or expense of the period?
(b) What effect does it have on stockholders’ equity?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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...