A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, 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?

Chapter 11, Discussion Questions #6

A corporation reacquires 60,000 shares of its own $10 par common stock for $3,000,000, 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
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