A corporation reacquires 10,000 shares of its own $25 per common stock for $420,000 recording it at

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A corporation reacquires 10,000 shares of its own $25 per common stock for $420,000 recording it at cost.

a) What effect does this transaction have on revenue or expense for the period?

b) What effect does it have on stockholder's equity?

Related Book For answer-question

Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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Posted Date: Jul 06, 2018 09:28 AM

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A corporation reacquires 10,000 shares of its own $25 per common stock for $420,000 recording it at

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Expert Answer:

a No effect on Revenue and expenses but company will have less cash for inv... View the full answer

Accounting

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